Lenders call for landlord tax breaks

Tax regulations designed to protect consumers should not apply to the buy to let sector according to The Council for Mortgage Lenders in the UK who are lobbying for tax breaks for landlords.

And given the fact that BTL sector activity seems set to rise, the Government should consider the introduction of tax breaks similar to those in Germany and France where rental losses can be offset against income. In some jurisdictions the rate of capital gains tax declines over time which would be a huge incentive to many potential landlords of the future investing for their retirement.

The CMS is calling on the UK government to consider a range of changes to complement the actions taken by mortgage lenders in recent years that have allowed the market to grow. Lenders have ensure that a range of attractively priced loans have become available and landlords are still able to borrow on an interest-only basis, although this should be weighed against stricter criteria in terms of yield.

The CML also has asked government to hold off from further regulation until it has reflected on the current situation in the market, in particular with regards to local landlord licensing which it is felt may deter new entrants to the BTL market.