The National Residential Landlords Association (NRLA) has recently called on the government to review taxation of landlords in order to address the current shortage of private rental properties in the UK. The NRLA believes that the current taxation system is too punitive and is discouraging landlords from investing in the private rental market.
The NRLA has argued that the current taxation system is too complex and has resulted in landlords being taxed on income that they have not actually received. This has resulted in landlords being hit with large tax bills that they are unable to pay. This, in turn, has resulted in landlords being discouraged from investing in the private rental market, as they are unable to make a return on their investment.
The NRLA has proposed a number of changes to the taxation system that it believes would encourage landlords to invest in the private rental market. These include reducing the amount of tax payable on rental income, introducing tax relief for landlords who make improvements to their properties, and introducing a tax-free allowance for landlords who rent out properties for long-term tenancies.
The NRLA believes that these changes would help to address the current shortage of private rental properties in the UK. By making it easier for landlords to invest in the private rental market, it would encourage more people to become landlords and would help to increase the supply of rental properties. This, in turn, would help to reduce rents and make renting more affordable for tenants.
The NRLA’s proposals have been welcomed by many in the housing sector, who believe that it is essential that the government takes action to address the current shortage of private rental properties in the UK. It is hoped that the government will take on board the NRLA’s proposals and make changes to the taxation system that will help to encourage more landlords to invest in the private rental market.