The Taxpayers Alliance, a lobbying group, has published a new report on the housing crisis which predicts the result of raising taxes on landlords – unsurprisingly that result is that tenants will suffer.

The report says:

“The housing crisis has prompted the government to take a number of policy decisions aimed at making it easier for people to buy a home. Together with policies implemented by local authorities, much has changed in property markets for owner-occupying buyers, landlords and tenants. These changes are not sufficient to tackle the housing crisis, whose underlying cause is planning policy restrictiveness.”

Report findings:

• The 3 per cent stamp duty additional homes surcharge will help prospective buyers but it will hurt tenants in rented accommodation
• The restriction of finance cost relief for individual landlords will also advantage prospective buyers at the expense of tenants
• Both policies will distort housing markets, with implications for incomes, employment and overall welfare
• These tax hikes make Britain’s complex tax system even more complicated and distort ownership structures
• Other local policy choices such as increasing the cost of Houses in Multiple Occupation (HMO) licences and introducing landlord licencing schemes will hit tenants
• Existing owner-occupiers taking advantage of lower house prices to expand their consumption will tighten supply conditions in the lettings market, raising rents.

Report recommendations

• Cancel the additional homes stamp duty surcharge and restrictions on finance relief
• Halve all stamp duty rates immediately with a view to abolishing it entirely
• Reform planning restrictions to declassify some green belt land and allow taller, denser construction in urban areas.