UK’s biggest building society demands Budget help for landlords
The Mortgage Works, a subsidiary of Nationwide, is urging government to support landlords for a stronger private rental sector.
The UK’s biggest building society has piled pressure on the Government to introduce its four measures which it says will build a stronger private rental sector.
The Mortgage Works (TMW), Nationwide’s buy-to-let lending arm, wants Chancellor Jeremy Hunt to use the Spring Budget to introduce four key actions which it says will help build a stronger private rental sector (PRS).
REGULATION
With increased regulation and taxation the society says that many landlords are struggling which is limiting their ability to invest in properties.
Combined with higher interest rates this is leading to reduced incomes, it says – forcing rent rises and reduced funds to improve properties.
TMW wants a moratorium on all but essential new regulation in the private rented sector following the introduction of the Renters (Reform) Bill arguing that it would provide certainty for landlords.
It also wants an incentive for landlords to carry out energy efficiency work and allow energy performance improvements to be deductible against rental income for tax purposes.
SOCIAL HOUSING
The building society, Britain’s biggest, wants to see an increase in funding for social housing, delivering 90,000 homes per year into the social housing sector.
And it also hopes there will be a review into changes to mortgage interest relief and landlord taxes. It says government needs to probe scrapping landlord mortgage interest relief.
Damian Thompson, Director for The Mortgage Works, says: “Landlords are a partner for the private sector and the Government in driving the economy forward.
“The current taxation system is counterproductive, hampering progress within the UK economy and negatively impacting tenants and landlords.”
And he adds: “Without the Government permitting landlords to offset mortgage interest against their rental income or making equivalent interventions, tenants will face reduced choice, increased rents and potentially less well-maintained homes and the UK economy will suffer as a result”.
