Question to the Department for Levelling Up, Housing & Communities:

To ask His Majesty's Government what steps they are taking to end the shortage of private rental accommodation; and whether such steps include restoring tax relief on buy to let mortgages.

The Government is driving up the supply of new homes by diversifying the market, investing in affordable housing, and increasing land supply for new homes by investing in infrastructure. We welcome new institutional investment in the private rented sector and have made a number of interventions to support the Build to Rent sector.

Since 2010, there have been a range of policy changes affecting private landlords, including tax changes for buy-to-let landlords. Specifically on mortgage interest, landlords are able to claim tax relief at the basic rate on finance costs for their rental property. Landlords also continue to be able to claim relief at their marginal rate of income tax on the day-to-day costs incurred in letting out a property, such as letting agent fees and replacing furniture.  As with all matters of taxation, the Treasury keeps this policy under regular review, and any decision on future changes will be taken in the context of the wider public finances.