Government policies are discriminating against UK based investment in the housing market by making it easier for foreign investors to purchase properties, according to the Residential Landlords Association (RLA), which has submitted its thoughts to the Treasury ahead of the Budget in March.

In the Autumn Statement it was announced that a 3% levy would be added to Stamp Duty for the purchase of buy to let property, except where 15 or more properties are being purchased at once. As the vast majority of investment in UK rental housing has been made by small landlords owning just a handful of properties to rent, this measure discriminates against them in favour of larger investors, many of whom are likely to be from overseas.

The RLA is calling for all new build properties contributing to a net increase in the housing stock to be exempt from the stamp duty levy. A survey of over 1,100 landlords by the RLA found that 30% would be more likely to build new properties if this were the case.

Commenting, RLA chairman, Alan Ward said: “It is astonishing that a Conservative Chancellor is leaving the way open for foreign investors and cutting opportunities for individual UK landlords. This additional assault on private landlords coming on top of changes to the taxation of rental income will only lead to reduced supply and higher rents.”