Industry boss warns Labour’s anti-landlord stance will harm tenants

Industry boss warns Labour’s anti-landlord stance will harm tenants

0:03 AM, 7th October 2024, About An hour ago

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Labour’s anti-landlord stance will hurt tenants, claims an industry boss.

Purplebricks’ chief executive, Sam Mitchell, told The Telegraph that Labour’s proposed tax hike rumours have fuelled anxiety in the property market.

Chancellor Rachel Reeves has refused to rule out an increase in capital gains tax (CGT) in the October budget.

CGT rates could be brought in line with income tax

Mr Mitchell says he has seen landlords leaving in droves ahead of the October budget. According to reports, CGT rates could be brought in line with income tax.

Mr Mitchell told The Telegraph: “If you put capital gains tax up, you will have this rush of landlords selling up which is bad for tenants, puts rents up and makes it very difficult to become a first-time buyer.”

“It’s almost impossible to save for a deposit if you’re a tenant that’s shelling out well over £1,000 a month on rent.”

Mr Mitchell suggested the government could potentially consider introducing some form of tax relief for landlords, which might also assist first-time buyers.

Mr Mitchell added: “If they do put capital gains tax for buy to let investors, then why not look at more entrepreneurial schemes – for example, reducing that tax burden if you sell a property to your own tenant or a first-time buyer?

“That could be a virtuous circle of helping first-time buyers and not being too punitive to landlords as well.”

Very popular to bash landlords

Mr Mitchell slammed the “punitive” decisions by the government regarding the removal of tax relief for mortgage interest and the introduction of a 3% stamp duty surcharge.

Mr Mitchell warns that with more landlords leaving the market, the supply of homes will drop.

He said: “It seems to be very popular to bash landlords. The trouble is these policies bashing landlords end up hurting tenants because it just further reduces the supply of stock in the sector.”

Labour has promised to build 1.5 million homes over the next five years and introduce the Renters’ Rights Bill which will abolish Section 21 and extend Awaab’s law into the private rented sector.


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