ARLA’S Proposals to Chancellor for Autumn Statement
Posted on 01/11/2016 by Sulgrave Estates
The Association of Residential Letting Agents (ARLA) have submitted a strong response to the Treasury in advance of the Chancellor’s Autumn Statement. ARLA pulls no punches and have made their views known on major issues which have impacted on the lettings market and could risk permanently damaging the private rented sector.
ARLA states that current Government policy does not reflect the various types of landlords involved in the PRS and the incentives they need to invest. As from April next year, letting property will be the only business where it is not possible to offset total costs against income before being taxed on profit.
If the Government wants landlords to act as professional businesses, they must provide the same reliefs and incentives that other businesses receive. An inability to offset finance costs combined with increased mortgage regulation will deter small investors from entering the market and tenants of existing landlords may see these additional costs passed on to them. Further, landlords will have less money available to spend on maintaining and improving their properties.
If the supply of rental properties falls as a result, the strain on a market where demand already outstrips supply will increase.
ARLA further calls on the Government to revoke the recent 3% stamp duty increase for landlords and also for regulation of letting agents.