The National Residential Landlords Association (NRLA) has rejected claims by the Joseph Rowntree Foundation that higher taxes for landlords will help renters buy homes.

The Joseph Rowntree Foundation report stated: ‘A recent aspect of housing policy has been the use of the tax system to dissuade buy-to-let acquisitions and, in doing so, boost the position of first-time buyers (FTBs).

‘These reforms helped level the playing field between landlords and owner-occupiers and contributed to helping more than a million households accessing homeownership. At the same time, concerns about potential downsides to renters – namely the risk of higher rents and reduced affordability – have not materialised.’

Ben Beadle, Chief Executive of the NRLA responding to these claims, said: “The idea that higher taxes are good for renters is simply not correct. 

“Both the former head of the Institute for Fiscal Studies and the current Housing Minister agree that tax policy affects rent levels. It is not clear how higher taxes, leading to higher rents, makes it easier for tenants to save for a home of their own. 

“Despite some modest improvements in supply, there are still an average of 11 renters chasing every home to rent according to Rightmove. Further tax hikes will serve only to dampen investment in the sector, undermine tenant choice and push rents even higher.

“We need tax policies that encourage long-term investment in new decent quality rental housing, supports investment in energy efficiency improvements, and incentivises responsible private landlords to bring long-term empty homes back into use.”