IMLA: Budget response

Following Jeremy Hunt’s announcement regarding the removal of the Furnished Holiday Lets (FHL) scheme, Kate Davies, Executive Director of the Intermediary Mortgage Lenders Association (IMLA), comments:

“Removing the FHL regime is perhaps a defensible tax grab, in that it will go some way to help level the playing field between short-term holiday lets and other types of tourist accommodation such as hotels and B&Bs.

“But if the aim is to help tackle the housing shortage in holiday hotspots, where buy-to-let landlords have been converting to holiday lets in their droves due to considerably lighter regulation, more generous tax perks and the potential for increased income, there are far more impactful measures the government could deploy.

“Easing the tax burden on landlords would encourage them to remain committed to the sector. In the short term, IMLA would like to see a review of the changes to mortgage interest relief and the additional 3% Stamp Duty charge to support landlords in continuing to provide the homes on which 20% of UK households rely. In the long run, of course, the only way to overcome the housing shortages which plague our country is for the government to commit to supporting an ambitious, sustainable programme of housebuilding, for social and private rental and purchase.”

Published: 06 March 2024