Scrap Stamp Duty Levy to Boost Supply of Homes for Rent, Urges NRLA

The National Residential Landlords Association (NRLA) is advocating for the removal of the 3% Stamp Duty Levy on the purchase of additional properties in the Spring Budget. They argue that this move would encourage investment in the private rented sector, leading to the creation of nearly 900,000 new properties to rent in London and across the UK. The NRLA emphasizes that addressing the housing crisis requires bolstering the supply of rental accommodation to meet the increasing demand, as evidenced by research showing 11 potential tenants for every available property.

Ben Beadle, the chief executive of NRLA, emphasizes the necessity for urgent action from the Chancellor to tackle the housing crisis. He highlights the potential benefits of growing the private rented sector, not only in meeting tenant demand for properties to rent but also in generating significant revenue for the government. Beadle argues against discouraging investment in rental accommodation, stressing that inaction will exacerbate the challenges faced by prospective renters.

The NRLA suggests that increasing the supply of rental homes could yield £10 billion in additional revenue for the government over five years, primarily through higher income and corporation tax receipts. They compare this figure to the budget allocated for the Affordable Homes Programme for 2021-26, indicating the potential financial impact of their proposal.

Furthermore, the NRLA’s stance finds support from Paul Johnson, the director of the Institute for Fiscal Studies (IFS), who warns of the correlation between harsh landlord taxation and increased rental prices. This suggests that reducing tax burdens on landlords could mitigate upward pressure on rents, thereby benefiting tenants.

Overall, the NRLA’s proposal aims to address the housing crisis by incentivizing investment in the private rented sector, which they argue will lead to increased housing supply, improved government finances, and potentially lower rental costs for tenants.