To ask the Chancellor of the Exchequer, what assessment has been made of the effect of (a) changes in mortgage interest tax relief for private landlords and (b) the end of the wear and tear tax allowance since the inception of those measures in April 2017.
23 July 2018
It is too early to properly assess the wider impacts of the restrictions to finance cost relief for landlords introduced in April 2017 as these are still being phased in. But given that only a small proportion of the housing market is affected by these changes, the government does not expect them to have a large impact on either house prices or rent levels. The Office for Budget Responsibility (OBR) also expects the impact on the housing market will be small.
The government expects that tenancy conditions will improve and more landlords will benefit from the reform of Wear and Tear allowance. Since April 2016 Replacement of domestic items relief has allowed all residential landlords to deduct actual costs incurred on replacing furnishings. All landlords, not just those of fully furnished properties, are now able to obtain tax relief for the costs of renewing furnishings in their properties.