SCOTTISH landlords have launched a new campaign against tax changes they claim could increase the number of slum accommodation and threaten the supply of rented homes.
The Scottish Association of Landlords (SAL) has teamed up with the Residential Landlords Association (RLA), south of the Border, to fight tax increases being imposed by the UK and Scottish governments.
They insist the changes expected to be introduced later this year are likely to increase costs, making it easier for irresponsible landlords to provide sub-standard housing to tenants and threaten housing supply for those who believe renting is the most suitable option for them.
Over the past year, the UK Government has announced significant changes to the way in which landlords in Scotland and across the UK are taxed.
These measures include that between 2017 and 2020 the Government will phase in only providing mortgage interest relief at the basic rate of income tax, income tax for some landlords will be calculated on the landlord’s income and the 28 per rate of Capital Gains Tax will be cut to 20 per cent, but this will exclude residential property, including homes to rent.
The Scottish Government also introduced a three per cent levy on the Land and Buildings Transaction Tax (LBTT) for those buying additional properties, including properties to rent out.
John Blackwood, chief executive of SAL, said: “With tax and legal changes being implemented at Westminster and Holyrood, there has never been a more important time for landlords to join trade bodies such as SAL.
“We need the data and information about the terrible effects these tax changes will have if we are to convince the UK Chancellor and Scottish Finance Minister to alter course.
“We know from our regular branch meetings around Scotland that landlords are already seeing increased costs as a result of tax changes.
“As well as impacting on individual landlords, we are concerned this could make it harder to tackle the current housing crisis by making it more difficult to attract much-needed investment.”
Meanwhile, almost 50 new affordable homes are taking shape in the latest phase of a major regeneration project in the south side of Glasgow.
The £4.7 million development by Glasgow Housing Association (GHA) will see 47 new modern and energy-efficient flats for social rent at Shawbridge in Pollokshaws.
It is the latest phase in plans to create a vibrant and popular neighbourhood in Pollokshaws – one of eight areas in the city earmarked as a priority for regeneration by Transforming Communities: Glasgow (TC:G) – a partnership between GHA, Glasgow City Council and the Scottish Government.
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