Response to Budget

8
Jul

Responding to the announcement in the Budget Statement this afternoon to end tax deductions for buy-to-let mortgages, John Blackwood, Chief Executive of the Scottish Association of Landlords said:

This is a shocking decision by the Chancellor of the Exchequer which unfairly discriminates against landlords who provide valuable housing across Scotland.  In other businesses, tax is applied on profit, which is as it should be.”

Although we welcome other measures in the Budget such as reforms to the Rent A Room scheme which will increase supply of affordable rented accommodation, the decision on buy-to-let mortgages means landlords will essentially be taxed for investing in their businesses, something utterly unthinkable in any other sector.  As a result of this increase cost and risk to landlords, you may see some within the sector feeling they are forced to increase their rent levels which would obviously have a huge negative impact on tenants.” 

“The Scottish Association of Landlords and the Council of Letting Agents have been working constructively with both Shelter and the Scottish Government to find ways of increasing supply to drive down rent levels in hot-spots across Scotland but this decision by the Chancellor potentially takes the legs away from that valuable partnership working.  We will be consulting our members, Scottish MPs and MSPs, as well as the Scottish Government and the third sector to find ways of trying to overturn this decision or, at the very least, to mitigate the damage this could cause to our business and to our customers in Scotland.”