Landlords could benefit from possible stamp duty ban and rental proposal

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Landlords could benefit from possible stamp duty ban and rental proposal Posted On 30 January 2024

Two potential positive developments in the rental sector could come to light this year, from which landlords would benefit hugely

There is the possible abolition of stamp duty for private landlords, and a chance that the supply of homes for private rent would be increased. The latter is something that, if approved, would boost government finances by £10 billion, as a result of increased income and corporation tax receipts, claims experts. The National Residential Landlords Association (NRLA) has submitted their proposal for this to the Government ahead of the spring budget on 6^th March, in hope of changing the rental sector significantly for many years to come.

According to research findings, an average of 11 prospective renters currently inquire about each available rental unit. According to an independent research by Capital Economics, eliminating the 3% stamp duty charge on the acquisition of additional properties would result in the creation of around 900,000 more private rental dwellings across the UK.

The Stamp Duty charge was established in 2016, with the then-Chancellor, George Osborne, arguing that it would prevent landlords from excluding families seeking to become homeowners. His reasoning was refuted by the London School of Economics which argued that “nationwide only a minority of sales to landlords involved bids from both types of buyer.”

The NRLA is calling for the Chancellor to scrap the levy at the budget, as is Paul Johnson, a director of the Institute of Fiscal Studies, who urges the abolition of stamp duty for private landlords altogether. Johnson explains that landlords pay far too much in tax – including rent income tax, capital gains tax on the sale of a property – and that reducing or scrapping any of these taxes in the upcoming spring budget would increase rental supply and reduce rents.

#property #landlords #stampduty