When former Chancellor of the Exchequer George Osborne announced his decision to remove tax relief for finance costs he did so explaining that he wanted to create a ‘level playing field’ between homeowners and landlords.
The NLA does not believe that this policy will do anything of the sort. In fact we believe that it will disadvantage landlords and householders alike by driving up the cost of providing much needed homes.
We commissioned independent economists, Capital Economics, to model the economic effects of the removal of finance costs relief (s24) and report back on the impact it will have on landlords, tenants, and the wider economy.
Their conclusions are both insightful and deeply concerning.