This year’s Budget should be used as an opportunity to increase the supply of new homes, as has been requested of the Chancellor.
Osborne is expected to present a package of measures that will significantly impact the housing sector in the first full-blown Conservative Budget for some 18 years, but the Residential Landlords Association (RLA) has urged the Chancellor to build more homes to rent in an effort to boost jobs and support the economy.
The RLA wants the government to use the tax system to recognize this as a business activity since the “vast majority” of landlords are individuals who only rent out a few properties.
The RLA wants to end the “anomaly” that allows VAT to be reclaimed when a new home is built for owner occupancy but not when a new home is built for rental purposes.
The organization also calls for roll-over relief on Capital Gains Tax when renting property is sold to a first-time buyer, in support of the government’s ambitions for home ownership, with appropriate controls to prevent abuse, such as a price upper limit.
The RLA’s chairman, Alan Ward, stated that “the private rented sector is now the only housing tenure that is growing, and demand is expected to increase further.” When it comes to creating jobs and finding a place to live, encouraging the sector’s growth is a win-win situation,” says the Treasury’s Financial Secretary. we urge the Chancellor to seize this golden opportunity to pursue growth.”
Andrew Granger & Co, a property and planning consultancy, has also urged the Chancellor to prioritize housing in tomorrow’s Budget.
It’s our hope that the government will continue to support housing and that measures to alleviate housing shortages are included in the budget.” Founder and CEO Andrew Granger stated, “We need a lot more new housing to keep up with the demand.
High rental rates provide investors with a better return than they can get from other types of investments, according to Mr. Granger. Rather than lowering rents, the shortage of suitable properties has resulted in a rise in property values, which has made it more difficult for people who currently rent their homes to buy their first home.” It would be beneficial if the budget included measures to address these problems.”
Rural housing shortages aren’t expected to be addressed in the budget, but Mr. Granger believes that action must be taken soon. Neighbourhood plans may actually be counterproductive in some communities if they cause conflict between groups of neighbors with different ideas, according to “We doubt that the initiative will be effective and may even end up being counterproductive in some villages and communities.”