Conveyancing Association response to buy-to-let announcement in Summer Budget

Responding to the Chancellor’s announcement today of changes to the tax reliefs for buy-to-Let landlords, Eddie Goldsmith, Chairman of the Conveyancing Association, said:

“The Chancellor’s decision today to restrict Mortgage Interest Relief to 20%, the Basic Rate of tax, is certainly a major reform which is likely to have far reaching implications for the market. The popularity of purchasing property to rent has grown exponentially, with our members undertaking more and more buy-to-Let transactions. This has increased further with the pension freedom reforms and has been a key element in keeping the housing market buoyant.

“We are encouraged that the Chancellor has recognised the need to deliver this change in a proportionate and gradual way, and will delay the changes until 2017. Restricting the tax relief could make it easier for first time buyers, and the Association certainly supports the Government’s wider reforms including the Help to Buy ISA. However the Chancellor must ensure that the right balance is struck, avoiding a negative effect on the availability of rented accommodation or higher rents.”