Scrap new home tax to raise £10bn: NRLA

Scrapping the stamp duty levy on the purchase of new homes to rent out could create a £10bn benefit to the government, according to the National Residential Landlords Association (NRLA).

The NRLA is basing its call to action on research it commissioned from Capital Economics.

This work forecasts removing the 3% levy would mean almost 900,000 new private rented homes would be made available in the UK over the next 10 years.

If occupation and social housing continue at their 10-year average rate of growth, this will create a significant increase in the supply of private rented homes according to Capital Economics.

Almost 230,000 new homes would be needed each year to meet government housing ambitions.

The £10bn figure has been calculated as a result from increase in income and corporate tax receipts.

NRLA chief executive Ben Beadle is calling upon to the government to “wake up” and warns a crisis is being created, with private rented stock set to decrease by over 500,000 properties by 2032.

“The government is taking a blinkered approach to the issue, which is not helped by its reluctance to admit mistakes it has made in the past,” says Beadle.

“It makes no sense to tax the supply of new homes supplied by landlords investing in new build or bringing empty homes back into use. As this study indicates, removing the tax will actually generate more revenue, not less.”