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Housing minister at odds with Govt on buy-to-let crackdown


Mortgage experts say anti-landlord tax changes instigated by former chancellor George Osborne will still come in despite the new housing minister setting out a favourable stance towards the rental sector.

Osborne has imposed higher stamp duty rates on buy-to-let properties and second homes, as well as cuts to mortgage interest relief in a bid to discourage private landlords and support Conservative homeownership ambitions.

But last week new housing minister Gavin Barwell said there should be a focus on building homes “of every single type” and backed the “good, thriving private rented sector”.

Barwell said: “Recent growth in the bespoke rental market has been impressive, but this progress must be expanded.”

But Mortgages for Business managing director David Whittaker says: “I don’t see the new housing minister repealing anything Osborne has put into place on the private rental sector. Once HM Revenue & Customs has something dialled in, they don’t let go. Not a cat’s chance in Hades.”

Richard Farr Consulting director Richard Farr says: “The clampdown on landlords is going to roll out.

“The biggest structural issue is we aren’t building enough houses. Suppressing the buy-to-let market just makes rents even worse.”

But Bill Warren Compliance director Bill Warren says: “They have been hammering buy-to-let, but that market supplied the rental properties for which there was a big demand.

“I don’t think it is too late to have a look at it, though I know once the Government has a source of income they are reluctant to give it up.”



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There are 4 comments at the moment, we would love to hear your opinion too.

  1. It’s long been the philosophy of our nation to own your own house , this is at odds with many other countries , if we are ever to redress the balance and achieve this we have to build more houses for buyers . Landlords have a place but rent exploitation isn’t part of it , controlling that sector in part is a viable and acceptable option . I bought my first house at 24 , my children may not get theirs before 30 at the earliest and maybe much later than that ! Fair rents and realistic house inflation is crucial , we must redress the issue of supply and demand , until we do simple economics will prevail .

    • Rents have just followed the laws of supply and demand, whilst the Government continues to sell off social housing under the Right to Buy scheme and crucially not build hardly any replacement housing. Demand for rent accomodation will continue to rise and as a result so will rent.

      The continued Government meddling on the demand side makes for good headlines but only makes matters worse. Extending Right to Buy to Tenants who live in Hosuing Association properties will do the same at it did for Council housing – i.e. kill it off. As will taxing to death BTL Landlords in the PRS will only force rent higher making it even more difficult for Tenants to save for a deposit, and the various Help-to-Buy schemes will only increase demand for properties and push prices even higher.

  2. Take London out of analysis and house prices don’t actually rise. Look more closely at the availability of public sector housing since the Thatcher years precipitated by right to buy – the great union breaker – without private landlords town centres would need more benches.

  3. Irrespective of what HMRC wants, or what Barwell says, or indeed what the new Chancellor, Phillip Hammond, stance is, does repealing S.24 Fiance Act (No.2) 2015 will happen just as it did in Ireland 14 years ago. It is just a question of foresight either do it now and save the pain and misery it will cause, or the hard way. Either way it will be repealled.

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