Question to the HM Treasury:

To ask Mr Chancellor of the Exchequer, what assessment he has made of the effect of section 24 of the Finance (No. 2) Act 2015 on (a) rental costs and (b) the supply of rental housing.

The government estimates that only 1 in 5 landlords will pay more tax as a result of this measure.

Given this, the government does not expect it to have a large impact on either rental costs or the supply of rental housing. The Office for Budget Responsibility (OBR) also expect the impact on the housing market will be small and did not adjust their forecast for house prices.

Basic rate income tax relief will still be available on a landlord's finance costs, and when the restriction is introduced in April 2017, it will be phased in over 4 years, giving gives landlords time to adjust.