Tax rise could drive more landlords from rental market

Summarised from 2 outlets · Updated 1 Nov, 13:05 · Archive

A second consecutive income tax rise on property and savings income is likely to drive landlords out of the private rented sector.

A second consecutive income tax rise is likely to drive more landlords out of the private rented sector, according to Brendan Kay, managing director of Parkers Properties. He warned the Chancellor's latest Budget will hit first-time buyers and landlords hard, with knock-on effects across the housing market.

Mr Kay said the additional 2 per cent income tax on property and savings income, coming on top of last year's 2 per cent rise, will only accelerate the exodus by landlords from the private sector. He expressed concern about the negative impact on first-time buyers, noting that whilst the Government is providing more support for deposits, this does not mean mortgages are more affordable. He also pointed to the shortage of new build homes, describing it as an acute crisis in West Oxfordshire, which reduces choice and increases costs.

With less rental stock available, tenants face higher rents and are less able to save for deposits to become first-time buyers. Mr Kay warned the trend could have long-term consequences for aspiring homeowners as landlords continue to leave the sector.

How it is being reported

• Tax rise could drive more landlords out of rental marketBrendan Kay, managing director of Parkers Properties, warned the Chancellor’s latest Budget will hit first-time buyers and landlords hardOxfordshire Guardian · 1 Nov, 12:30
• Tax rise could drive more landlords out of rental marketBrendan Kay, managing director of Parkers Properties, warned the Chancellor’s latest Budget will hit first-time buyers and landlords hardOxford Mail · 1 Nov, 12:30

In this story: Brendan Kay · Parkers Properties · West Oxfordshire · Oxfordshire

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