If you’re a House Builder …
You will know that there is an enormous shortfall in the number of new houses being built each year. You’ll also know that a lot of houses that you build are bought by Landlords because you market to them as well as owner/occupier buyers.
Currently 15% of mortgage approvals are for the Buy-To-Let market but the change in the tax could very well kill that part of your market off. Perhaps that will make you cautious and you’ll slow output but carry on building nevertheless.
It’s possible that when the changes to the tax system are fully implemented, Landlords will need to sell off thousands of properties thus putting house prices at risk of falling.
Will you be able to continue building in a falling market?
We've indicated elsewhere on this site just how big the problem could be but even if it's only half that size, it'll likely take you back to the same situation as when the Recession hit. Your industry has only just got back on its feet and this tax change could be a deadly blow.
The Institute of Fiscal Studies have agreed with the Chancellor that there is a great problem with young people getting a foot on the housing market but stated that the problem was one of lack of supply, and that this tax change will not solve that. So the IFS have told us what we already knew in that we need more houses, yet the Chancellor is taking action that could result in you building less or even stopping altogether. We think this is completely wrong!
If you think that we’re right in what we’ve said and want to stop the proposed tax change on mortgage interest relief please write to your local MP to ask him/her to support you.