The National Residential Landlords' Association (NRLA) has submitted new proposals for the private rented sector, urging landlord tax reforms to stimulate investment and expand the availability of rental properties. The 17-page document recommends changes to Capital Gains Tax (CGT) rules, incentives for energy efficiency, and the reinstatement of Local Housing Allowance (LHA) rates.
Among the proposals are a deferred annual investment allowance for landlords, which would accumulate yearly and be realised upon property sale, with longer-term investors receiving higher payments. The NRLA also suggests extending Business Asset Rollover Relief to residential property, allowing landlords to defer CGT when sale proceeds are reinvested into new rental homes.
Regarding energy efficiency, the plan advocates for specific improvements to be treated as revenue costs, enabling landlords to deduct them against income tax. It also calls for an updated list of qualifying measures and a modernised Landlord Energy Saving Allowance for works such as double glazing and low-carbon heating. Additionally, the NRLA proposes that LHA rates should be restored to at least the 30th percentile from the next financial year and maintained throughout the current Parliament.
The recommendations have been sent to ministers, think tanks, stakeholders, and Prime Minister Andy Burnham. Ben Beadle, chief executive of the NRLA, stated that while most private renters are satisfied with their homes and find rents affordable, there is a need for more rental properties.