Belvoir Regrets Missed Opportunities by Chancellor
Dorian Gonsalves CEO of Belvoir, says there were missed opportunities within Philip Hammond s Budget, that could have helped to bring much-needed stability to the UK s growing rental market.
It is disappointing that housing, and in particular, the nation s rental market were neglected and did not really feature in this Budget, he says.
I feel there were real missed opportunities by the Chancellor to introduce some kind of incentives for landlords, which would have encouraged them to remain within the sector and introduce new properties to the rental market. Belvoir, together with various landlord groups, has long been calling for tax breaks for landlords to encourage them to offer longer tenancies and provide the UK s 11 million renters with more choice.
It was also very interesting that the Chancellor made reference to the fact that Capital Gains Tax is currently not levied on the gain of main residences, and that this situation will remain unchanged. The fact that CGT was mentioned at all in this context could perhaps hint towards a future decision by the government to levy CGT on main residences in the future.
Belvoir, which has over 300 High Street offices, is due to publish the results of its Q3 rental index within the next week. Data within this report will provide further details regarding static and falling rents in the UK, and information on the average length of tenancies, which are now increasing to 19-24 months. The report, which is prepared for Belvoir by property expert Kate Faulkner, will also reveal new figures regarding the numbers of landlords who are currently selling up and exiting the market due to punitive tax legislation that is coming into effect and negatively impacting on their investments.
Finally, although Belvoir very much welcomes the news of a reduction in business rates, we feel that a full overhaul of this particular tax is necessary to support the UK s High Street.