The Residential Landlords Association is saying the move would ‘choke off’ the supply of rental properties, leaving many young people stranded.
Instead, it called for the Chancellor to use the Budget to scrap the Stamp Duty surcharge of three per cent on additional properties, which was originally introduced to discourage landlords from buying more properties that could go to first-time buyers.
However, the Stamp Duty changes have been clogging up the property market - particularly at the top end - as buyers don’t want to buy homes that come with a massive tax bill.
Mark Readings from estate agent House Network agreed that the increased Stamp Duty was a significant factor in the current downturn in the housing market in London and the South East.
He said: “The government needs to support and stimulate the property market, not only for first-time buyers but for those existing landlords and international investors.”
Separately, there have also been calls in the past for tax incentives for landlords offering longer-term tenancies.
Tax relief for landlords is already being tapered down and will eventually be replaced with a 20 per cent tax credit by 2020.
Mr Readings concluded that whatever the government announces next week, it needs to help landlords or they’ll begin to look elsewhere to invest.
He said: “The property market is largely dominated by economy sentiment and, as recent political uncertainty has decreased this confidence, the government needs to take measures in the Budget to prevent any further uncertainty.
“The major cities have been the hardest hit so many investors will seek alternative locations if the government continues to make properties less appealing for international and UK landlords.”
source- simply business