The Chancellor is reportedly preparing to launch a £300m tax grab targeting second-home owners who profit from holiday lets.
This weekend The Sunday Times reported that the Chancellor is mulling a move which will see the abolition of various tax advantages currently enjoyed by landlords opting for short-term holidaymaker rentals over long-term tenancies.
The decision, although another tax measure by the Conservatives, is aimed at alleviating the housing crisis in popular tourist destinations like Cornwall and the Lake District. The shift to holiday lets has been attributed to tax incentives and has resulted in a shortage of housing for local residents.
Dan Wilson Craw, deputy chief executive of Generation Rent, responded to the news: “That means that in Britain’s holiday hotspots, first-time buyers have been getting outbid…while tenants have lost out to tourists.” He also emphasized the efforts of Generation Rent and its supporters to campaign for the elimination of these tax perks.
However, Nathan Emerson, CEO of Propertymark, expressed concerns about the rumored tax measures. “Propertymark are extremely concerned to see reports…of a rumoured £300m attack on landlords within the budget,” he stated, highlighting the financial pressures landlords face due to inflation and interest rates. Emerson calls for a “workable” system that maintains viability for landlords and investors while providing quality housing options.
