Could Slashing Landlord Tax Breaks Raise Standards?

The Guardian is asking its readers whether they think that cutting tax breaks private landlords currently enjoy will help to improve standards in the private rental sector. The Chartered Institute of Housing (CIH) believes this is the answer after analysis conducted by

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them revealed that 33% of private rented properties are failing to meet government decency standards (these guidelines were introduced in 2000 to try and improve conditions in property in the social housing sector).

Greater Landlord Investment Needed
The CIH thinks that if tax breaks were increased and decreased in line with property standards, more private landlords would be persuaded to invest money in their homes.

“Private landlords benefit from around £7bn of tax allowances a year for expenses, but they don’t target or incentivise higher standards. If landlords who committed to a higher level of standards benefited from a more targeted allowance, while those who did not saw their allowances stay the same or even reduce, the government could encourage higher standards – without needing to find any extra money.”

RLA Warns Move Could Hamper Supply of Housing
The Residential Landlords Association disagrees with the CIH and is warning that such a move will discourage new landlords from entering the private rental sector, which will in turn cause a decline in standards.

According to Mark Butterworth of the RLA: “Boosting supply is the best way to improve standards and to do so we are calling on ministers to reform the tax system to better encourage landlords to invest in new homes to rent.”

What do you think? Let us know!