The main landlord trade body has called for Chancellor Rachel Reeves to break with orthodoxy on Wednesday.
The National Residential Landlords Association says the Budget on Wednesday represents the biggest challenge of Reeves’ political career.
The association says: “She could take the easy route and introduce a set of tax measures that penalise our sector for short-term revenue gains, disincentivise investment and further squeeze those of us still providing homes.
“Or she could break with recent orthodoxy and use the tax system to incentivise long-term investment in good quality, secure homes. Every pound a landlord is encouraged to invest drives local economic activity, adds to supply, and improves stock.”
The association says its members back the private rental sector’s contribution towards labour mobility, providing homes for key workers, and supporting opportunity.
And it claims that tax increases that reduce rental supply and drive-up costs are not just bad for landlords; they are economically damaging and, ultimately, harm tenants through higher rents and less choice.
There are two specific measures which the NRLA hopes to see.
Firstly it wants the Chancellor to interlock Housing Allowance, regarding it as “a vital mechanism to increase access to homes whilst preventing low-income tenants from falling into rent arrears and facing homelessness, which places enormous strain on local authority budgets.”
Instead, unfreezing LHA would provide immediate, targeted relief where it is needed most and save government money in the long-term.
Secondly the association wants help for landlords to green their properties.
The NRLA says: “Many landlords are onboard with this objective, but the investment required to retrofit older properties is substantial, often running into many thousands of pounds per property.
“We are seeking tax efficiencies to help landlords retrofit properties. This could take the form of an enhanced capital allowance for energy efficiency improvements, or the redesignation of retrofit measures as revenue expenses, allowing the cost to be offset against tax more quickly.
“In the immediate term we need certainty about targets, timelines, and what funding is likely to be available to the PRS.
Without financial support, the burden falls entirely on landlords, which risks either disincentivising investment or driving up rents to cover the capital cost.”
The Budget will be delivered at lunchtime on Wednesday.
This article is taken from Landlord Today