Treasury's tax plans would hit renters in their pocket

The NRLA has issued its response to reports in today’s edition of The Times which suggest that the Government is set to levy national insurance on rental income.

According to these reports, the proposals have emerged due to the Government’s desire to raise £4bn in revenue from the forthcoming Budget.

In the NRLA’s view, introducing these changes is likely to hit tenants across the private rented sector and will fail to incentivise investment across a market which continues to experience chronic issues around supply and demand.

Responding to reports that the Government is considering levying National Insurance on rental income, Ben Beadle, Chief Executive of the National Residential Landlords Association, said:

“Further punitive tax hikes on the rental sector will lead only to rents going up, hitting the very households the Government wants to protect. It would come on top of last year’s increase to stamp duty on homes purchased to rent and proposals expecting landlords to pay up to £15,000 on energy efficiency improvements to properties.
 
“Analysis by Savills shows that up to one million new rental homes will be needed by 2031 to meet demand. Given this, the Chancellor should be using the tax system to encourage long term investment in new good quality rental housing. She should also heed the advice of the Committee on Fuel Poverty and reform the tax system to support and encourage investment in energy efficiency improvements.”
 
-ENDS-
 
Notes:
 

• According to Savills, up to one million additional homes will be required to accommodate growing rental demand by 2031, particularly from young families, across England and Wales. Further details can be accessed here.
   
• In its response to the Government’s consultation on new energy efficiency standards in private rented housing, he Committee on Fuel Poverty called on the Government to “consider tax incentives to offset investment, for example, offsetting energy efficiency expenditure incurred in one year, against profits made over several future years.”
   
• Further information about the NRLA can be found at www.nrla.org.uk.  It posts on X @NRLAssociation.
   
• The NRLA’s press office can be contacted by emailing [email protected] or by calling 0300 131 6363.