Propertymark criticises buy to let purchase tax increase

Propertymark has shown support for many of the Welsh Government’s new Budget proposals but opposes the increase in Land Transaction Tax on buy-to-let properties. Key points include:

• Housing Support Grant: The Budget, approved by the Welsh Parliament, includes a £21 million increase for the Housing Support Grant, bringing total funding to £204 million for 2025-26. This grant aims to prevent homelessness and help people access stable housing.
• Social Housing Investment: Over £437 million in capital investment for social housing is allocated for 2025-26.
• Local Government Funding: Propertymark previously supported a 4.3% increase in local government funding to improve inspection capacity for enforcing the Renting Homes (Wales) Act and the forthcoming Welsh equivalent of the Building Safety Act.
• Land Transaction Tax: Propertymark maintains its opposition to the increase in Land Transaction Tax on additional residential properties, warning that it could reduce the supply of rental homes.

Tim Thomas, Policy and Campaigns Officer at Propertymark, emphasized that raising the Land Transaction Tax on buy-to-let properties could lead to higher rents and a reduced supply of rental homes, negatively impacting renters and the private rented sector in Wales.