A new report jointly
produced by the Resolution Foundation and Chartered Institute of
Housing, calls for the introduction of tax incentives to improve
the standard of housing and management in the private rented
It points to the variable quality of performance among private
landlords and calls for national agreement on basic standards
covering both property condition and management performance, to
underpin arrangements for accreditation.
Given common standards, accreditation schemes could be run by a
variety of appropriate bodies. Making access to a percentage of the
tax relief currently enjoyed by private landlords conditional on
accreditation would create the incentive for landlords to seek
- Giving accredited landlords a more generous tax allowance for
"allowable expenses" (where landlords deduct the cost of repairs
from their profits for income tax purposes), compared to
- Allowing landlords to treat any improvement that is necessary
to bring a property up to accreditation standard as an allowable
expense (instead of deducting it from the landlord's capital gain
liability when they sell the property) - providing an earlier
benefit to the landlord from this kind of investment.
- Allowing accredited landlords to benefit from capital gains tax
rollover relief so that where a rented property is sold and the
proceeds immediately invested in another the landlord can defer
payment of capital gains tax on any profit they have made.
The report also looks at the possibility of unconditional
reliefs in relation to the Green Deal and other works to raise SAP
ratings, and to boost local authority funding for basic tenancy
With the Party Conference season upon us in the last year before
what CIH Chief Executive Grainia Long has called the most important
General Election for housing in a generation, new suggestions on
how to improve conditions for private tenants are particularly
timely. They deserve serious consideration.