Speaking at the opening of its annual conference, CIH president, Paul Diggory, labelled BTL as ‘a runaway train’ and said the massive growth in the sector was responsible for pricing FTBs out of the market.
The CIH insisted removing tax relief would help affordable housing reach FTBs.
Diggory said: “The government has acknowledged that there is an acute lack of affordable housing across the country so it does not make sense to still offer tax relief to those who buy, simply to rent. BTL owners have a financial advantage over those trying to buy their first home, as well as pushing house prices even higher, so we hope the new Chancellor removes this tax relief as part of the Comprehensive Spending Review.”
Diggory also rounded on landlords who were either unable to rent properties out or left them empty to make a profit on the capital appreciation, saying they were keeping housing stock out of FTBs’ reach.
However, Mark Sismey-Durrant, chief executive of Heritable Bank, said:
“It’s a difficult topic as being a landlord is like being self-employed. Therefore, removing relief would be taxing legitimate business. However, if flats are left empty, landlords are taking away potential homes for FTBs.”
