NRLA: Budget 2024 fails to deal with PRS supply crisis
Today's budget has failed to introduce the pro-growth measures needed to help tackle the current housing crisis.
Chancellor Jeremy Hunt MP announced a number of changes which will affect landlords, but failed to introduce bold proposals - such as changes to stamp duty and mortgage interest relief - that could encourage landlords to stay in the sector and continue to invest.
Among the annoucments were plans to:
• Reduce Capital Gains Tax from 28% to 24%
• Cut National Insurance to be paid by workers by 2p
• Abolish the furnished holiday lets tax regime.
Ben Beadle, NRLA Chief Executive said: “The Chancellor has once again ignored calls to revitalise long-term investment in quality rented homes in favour of tinkering at the margins for short-term gain.
“Increasing taxes on holiday lets and cuts to Capital Gains Tax will make no meaningful difference to the supply of long-term rental properties. Meanwhile, those reliant on housing benefits still do not know if their benefits will be frozen from next year or not.
“With an average of 11 tenants chasing every home for private rent, social housing waiting lists at 1.3 million, almost 110,000 households in temporary accommodation and the number of first-time buyers slumping, the Budget needed to tackle the housing crisis once and for all. What we got was a deafening silence.
“This was a missed opportunity to make providing new homes to rent and buy the priority it desperately needs to be.”
Click here to read for the document in full and click here to find out more about how the changes to Capital Gains Tax will affect you.
