Chancellor could squeeze buy-to-let market
McCann said the Chancellor could use the budget to take “some of the heat out of the property market and increase supply of typical first-time-buyer properties”.
He said: “The Chancellor may look to squeeze the buy-to-let market in his next Budget. At the moment, mortgage interest payments on rental properties can be deducted from income along with other management expenses such as repairs, insurance and certain travel expenses, to help reduce any income tax that may be due.
“This is a very attractive tax-break for investors and makes typical rental properties – which also tend to be wanted by first-time-buyers – all the more in demand.
“The Chancellor has already made a huge commitment to first-time-buyers through schemes such as Help to Buy.
“Removing or reducing the tax break would be very unpopular with landlords but may help people to take their first steps on the housing ladder and ease pressure on demand for new housing stock.”
The Budget will be announced next Wednesday.