The National Residential Landlords Association (NRLA) recently called on the government to examine landlord taxes in order to address the current housing supply shortage. The NRLA believes that the current tax system is putting too much of a burden on landlords, making it difficult for them to provide housing for tenants.
The NRLA estimates that the current tax system is costing landlords an average of £2,500 a year, which is preventing them from investing in new properties. This lack of investment is leading to a shortage of housing and driving up rental prices. The NRLA believes that if the government were to reduce the tax burden on landlords, it would encourage more investment in housing and help to alleviate the current housing shortage.
The NRLA has proposed a number of measures that the government could take to reduce the tax burden on landlords. These include reducing the Stamp Duty Land Tax, which is a tax on property purchases, and introducing a tax relief scheme for landlords who are investing in new properties. The NRLA also believes that the government should consider introducing a capital gains tax exemption for landlords who are selling properties that they have held for more than five years.
The NRLA’s proposals are aimed at encouraging more investment in housing and helping to address the current housing supply shortage. If implemented, these measures could help to make renting more affordable for tenants and ensure that landlords are not overburdened with taxes.
It remains to be seen whether the government will take the NRLA’s proposals seriously and implement them. However, it is clear that something needs to be done to address the current housing supply shortage and the NRLA’s proposals could be a step in the right direction.