PARLIAMENTARY WRITTEN QUESTION
Private Rented Housing (9 September 2015)

To ask Mr Chancellor of the Exchequer, what assessment his Department has made of the potential effects of the measures to restrict finance cost relief for landlords, announced in the Summer Budget 2015, on the supply of property in the private rented sector in (a) Scotland and (b) the UK.

Asked by:
Ian Murray (Labour)

HM Treasury expects a minimal impact on the supply of property in the private rented sector in Scotland and the UK from changes to restrict tax relief on finance costs. Fewer than 1 in 5 landlords are expected to pay more tax as a result of this measure and it will be introduced gradually from April 2017 over 4 years to give landlords time to adjust. The Budget also announced increased Rent a Room relief, which can help to increase levels of private rented accommodation.

The Government is taking significant steps to support housing supply with housing starts at a 7 year high. Overall, the OBR believe the impact on the housing market will be small and, taking account of the other measures in the Summer Budget, have not adjusted their forecast for house prices.

Answered by:
Mr David Gauke (Independent)
14 September 2015