Relief for multiple dwellings
Scrapping LTT relief for multiple dwellings would automatically abolish the linked six dwellings rule, which allows taxpayers to pay non-residential rates for purchases of six dwellings or more.
Propertymark, and other stakeholders, argued for retaining LTT MDR, warning that removing it would disincentivise investment in rental property and negatively impact the Welsh economy through lack of housing supply.
The Welsh Government justified the proposals by stating that the money saved on MDR would broadly offset the loss of funding to the Welsh Block Grant, but we urged them to consider other policy initiatives that could capitalise on the divergence of the tax regimes in England and Wales.
Extending benefits to local authorities
There was broad agreement on allowing Welsh local authorities the same relief currently provided to registered social landlords, and most respondents were aligned with Propertymark’s call for the relief to also be extended to private rented sector landlords.
Other rules to consider
The Welsh Government should now consider reducing higher rates of LTT on residential property and use its influence to engage with the UK Government to highlight and challenge the impact that tax policy, such as the phasing out of Mortgage Interest Relief, has had on supply within the Welsh PRS.
Propertymark welcomes further engagement with the Welsh Government to ensure future proposals work to support the supply of homes for all.
