A director at SpareRoom has hit out at the government for grouping holiday lets with long-term lets, saying we’re in dire need of long-term rental stock and the tax regime should reflect that.
In the Autumn Budget the government opted to increase the stamp duty surcharge from 3% to 5% on second properties – hitting non-rented homes, holiday lets and long-term lets all in one swoop.
As a result, Matt Hutchinson, communications director at SpareRoom, told the government it needs to rethink its overly broad definition of a second home.
He said: “We need a tax system that prioritises genuine homes – whether owner occupied or rented – and distinguishes them from holiday properties and short term lets.
“A rental property let on a residential basis and in use year round contributes to the overall supply of residential accommodation, which is something we desperately need right now.
“Holiday homes, whether privately owned and used or rented out as holiday lets, don’t. What’s more, they stand a higher chance of being empty for part of the year.”
He added: “Instead of a blanket increase in stamp duty, we need a tax system that recognizes the vital difference between properties that serve as permanent homes and those that are used for short-term or occasional stays.
“Holiday homes should be treated separately from rental homes, as they have a very different impact on the housing market.”
Hutchinson reckoned holiday properties should face additional tax burdens to reflect their limited role in addressing the housing crisis.
