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The Residential Landlords Association (RLA) has been campaigning against the government’s introduction of mortgage interest rate relief restrictions ever since the changes were introduced. Now it seems that their campaign is beginning to bear fruit.
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Higher Rate Landlords Penalised
Once the changes come into effect, landlords with buy to let mortgages will have mortgage interest rate relief restricted to basic rate, even if they are higher rate tax payers. Lower rate tax payers will not be affected, but landlords with larger portfolios, i.e. higher rate tax payers, will have much higher tax bills as a result.
The RLA thinks this change is hugely detrimental to the private rental sector and now it seems that a number of Tory MPs are in agreement. RLA directors have met several very influential Tories, including the former Secretary of State for Wales, David Jones MP, plus they met up with Treasury Minister Lord O’ Neil at the beginning of May.
The Tide is Turning
Since then, the tide of opinion has begun to shift in favour of the RLA, with many Tory MPs becoming more vocal about their lack of support for the Chancellor’s measures. David Jones wrote a hard-hitting article in the Conservative Home publication, outlining why he was concerned about the measures. Tory Peer, Lord Flight, has also backed the RLA campaign, as has Mark Field MP and Graham Brady, chair of the 1922 committee.
The RLA is now calling for its members to contact their local MP and pile on even more pressure. They are hoping the government will be persuaded to rethink the measures.
