Increasing the supply of homes for private rent would boost the government’s coffers by £10bn, equivalent to almost the entire affordable homes budget, according to new data from the NRLA.
The assessment follows the submission of NRLA’s proposals to the government ahead of the budget on 6th March, amidst a supply crisis in the rental market.
Research findings suggest that an average of 25 prospective tenants now make enquiries about every available property to rent.
Independent analysis by Capital Economics also reveals how scrapping the 3% stamp duty levy on the purchase of additional homes would see almost 900,000 new private rented homes made available across the UK.
As a result of increased income and corporation tax receipts, Capital Economics’ modelling indicates this would lead to a £10bn boost to treasury revenue over the same period.
For context, this is the equivalent of almost the entire £11.5m affordable homes programme budget for 2021-26.
The NRLA is calling for the chancellor to scrap the stamp duty levy at the budget.
Ben Beadle, CEO at NRLA, said: “The chancellor needs to pull out all the stops to tackle the housing crisis.
“Growing the PRS is not only vital if tenant demand is to be met, but it would also provide a substantial boost to treasury coffers, enabling it to invest in vital public services.
“It makes no sense to discourage investment in desperately needed private rented accommodation.
“Inaction will only result in more misery for prospective renters.”
