Capital Gains Tax relief to encourage longer tenancies and sales to tenants in private rented housing, RLA response

October 9, 2018

Responding to proposals from the Conservative Think Tank, ‘Onward’ today for Capital Gains Tax relief to encourage longer tenancies and sales to tenants in private rented housing, David Smith, Policy Director for the Residential Landlords Association said:

“We welcome Onward’s acceptance of the need for more positive taxation in the rented sector which the RLA has long argued for. Indeed, last year, we suggested using Capital Gains Tax reliefs in a similar way to that being proposed today.

“Since then, a report by academics at Cambridge University for the RLA has argued that it is not clear whether a reduction in the rates at which Capital Gains Tax is applied would incentivise landlords to sell their properties to sitting tenants. A more suitable approach would be a tax relief on rental income for the provision of longer tenancies with a refund on the stamp duty levy for additional properties where a landlord is prepared to sell a property to a sitting tenant.”

David Smith continued:

“Where Onward is wrong is in its call for landlords to disinvest from the sector. With the demand for private rented homes showing no signs of abating, and the Institute for Fiscal Studies today warning of the difficulties many young people have affording a home of their own, to choke off the supply of rental homes would leave many young people stranded and continuing to rely on the home of mum and dad for a place to live.

“The Chancellor should use his budget to scrap the stamp duty levy on additional properties where landlords are prepared to invest in property adding to the net supply of homes. This could include bringing empty homes back into use, new build properties or converting larger properties into smaller, more affordable units. To tax new housing supply given the current housing crisis we face is simply ludicrous.”

Source of information RLA

Allen Walkey

Highly experienced businessman with a successful career in property sales and investment both in the UK and abroad. Now a freelance writer and blogger for the property and Investment Industry, keeping readers up-to-date with changes and events in a rapidly changing world.

You May Also Enjoy

Estate Agent Talk

The Future of Urban Real Estate: Trends and Predictions for 2026

Affordability pressures, hybrid work arrangements, and steep borrowing costs are heavy influences on urban real estate for 2026. We’re seeing an increase in mixed-use development and a renewed focus from investors on markets with a steady demand. Markets that can balance housing access, transportation, lifestyle amenities, and flexible workplaces will come out on top. Major…
Read More →
Estate Agent Talk

London’s prime residential market isn’t falling — it’s repricing

By Daniel Austin, CEO and co-founder at ASK Partners London’s prime residential market has looked subdued by global standards, but framing current conditions as a decline overlooks the more important underlying dynamic. The market is undergoing structural repricing driven by higher interest rates, shifting tax policy and a more volatile geopolitical environment. This is not…
Read More →
Breaking News

Foxtons Lettings Market Index – April 2026

Market activity strengthens with applicant demand recovering and supply remaining ahead of last year   After the implementation of the Renters’ Rights Act, April provides the final snapshot of market conditions ahead of implementation, offering a clear benchmark for how the sector is positioned entering this new regulatory environment. The lettings market strengthened through the…
Read More →
Breaking News

Five hidden costs catching home buyers out

FIVE hidden costs that’re catching home buyers out, AFTER they put their offer in, says expert • Buyers often focus on deposits and mortgages, but overlook thousands in extra costs • Delays, surveys and legal fees can quickly inflate budgets • Unexpected gaps in funding are becoming increasingly common A lot of home buyers think…
Read More →
Breaking News

Housing Insight Report: March 2026

Buyer activity and sales agreed picked up this month as the housing market entered the spring season, with increased stock levels giving consumers more choice despite ongoing affordability pressures. Meanwhile, the rental market remained highly competitive, as tenant demand continued to outstrip supply and concerns over future regulation weighed on landlord confidence. Sales 1. The…
Read More →
Breaking News

Renters’ Rights Act risks leaving the tenants it set out to protect with fewer options

Fewer than a third of landlords are fully aware that the Renters’ Rights Act bans advance rent payments of more than one month, according to new research from LRG. The survey of 650 landlords and tenants across England and Wales found that 43% know the rules have changed but remain uncertain of the details, while…
Read More →