The government should support growth in the private rented sector and remove barriers to further investment, says the Association of Residential Letting Agents (ARLA).
In a Budget submission to chancellor George Osborne, ARLA calls for landlords to be treated as entrepreneurial businesses for capital gains tax purposes, so that they can enjoy the same tax reliefs as other firms.
At the moment some landlords face bills of 28 per cent when they sell a property, which ARLA says prevents them reinvesting in the market.
It wants the government to allow landlords to take advantage of the roll-over relief available to other businesses and only charge capital gains tax on gains released from the business as a profit.
ARLA also wants the reform of stamp duty to remove the slab structure that it says unfairly distorts the market.
Ian Potter, operations manager at ARLA, said: “Demand for private rented housing continues to grow with 3.4 million tenants living in the private rented sector, an increase of over one million tenants since 2005.
“The tax system can be used by the government to incentivise investment in housing stock in the private rented sector and therefore improve the conditions in which those 3.4 million tenants live.”Source: aboutproperty.co.uk