The National Landlords Association (NLA) has kept its demands on the government for the next Budget relatively low, in recognition of the fact that governmental priorities may lie elsewhere.
The NLA has asserted its opposition to the government’s changes to mortgage interest tax relief, however has instead requested three demands. The NLA has stated that it recognises that issues such as Brexit are far more likely to be occupying the government’s attention at this point, making further reforms an ‘uphill task.’
A statement from the organisation said: ‘Therefore our budget submission, whilst once again stating our opposition to Section 24, explores practical measures the government could introduce achieve their stated policy aims and to help our members plan for the future.’
The three proposals that have been suggested include, firstly, the introduction of a Capital Gains tax cut or taper. The NLA explained: ‘We argue this will to help facilitate the disposal of poorly performing property and diversify people’s financial investment portfolio. We have sent costings to the Treasury which show this need not be as expensive as some fear.’
Their second demand was for the extension of business asset rollover relief to allow for the restructuring of portfolios. It was argued that this would ‘will facilitate increased sales of property and greater mobility between tenures, whilst allowing landlords to reduce the gearing of their portfolios, thereby protecting against market shocks and improving stability.’
Finally, the NLA called for the reintroduction of the Landlords’ Energy Saving Allowance on the basis that the collapse of the Green Deal means that nearly 30,000 landlords will need help mitigating the considerable capital costs of revamping their properties to stay in business, as new tenancies cannot be granted for properties with Energy Performance Certificate ratings of F or G from April 2018.’
It is hoped that the government will consider these proposals to ensure that the much needed private rental sector can remain strong.