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Saturday 19 November 2016

Dear Philip Hammond….


Philip,
It’s Bill here.  I thought I’d drop you a line before your big day next week to make a few suggestions on behalf of Oxford’s landlords.  I’ll keep it brief, as I know you are busy, but come on mate you know these suggestions make a lot of sense.

1.       Reverse George’s stamp duty changes – as you know they’ve delivered only half of the expected £700m and they seem to have reduced the number of house sales.  Do something bold like halving the rate for stamp duty and offering a stamp duty holiday early in the New Year.

2.       Remove the 3% stamp duty surcharge on second homes – Oxford needs over 6,800 new rented homes by 2025 and since the surcharge introduction in April fewer homes have sold to landlords meaning we are falling further behind the curve now on both new house building and new rental homes.

3.       Scrap the planned tax relief changes – nationally 440,000 basic-rate tax payers will be forced into the higher tax bracket once these changes to landlord taxation come into force.  These Section 24 changes risk landlords having to pass-on extra costs to tenants in higher rents and further worsening the problem of rent arrears.  Oxford’s landlords have a history of balancing rent increases to look after their tenants, but stamp duty and section 24 risk undermining their returns entirely.

4.       Build more homes in Oxford.  We need 400 new homes per annum just to avoid worsening the supply crisis.  This is pushing Oxford prices ever higher, worsening the affordability gap between average house price and average income, and creating a knock-on higher demand for rental properties.

5.       Introduce a capital gains holiday to encourage landowners to release land for new home building.  At present due to high rates of capital gains tax, there is little incentive for owners to release land for development.  Work with local planners to identify ideal parcels of land and encourage the landowners to sell via the tax holiday.

Philip, as you know Oxford is ranked 5th Nationally for gross value-added, and is experiencing strong population growth reflecting it’s attractiveness for people in terms of employment, cultural arts and its knowledge based economy.  Oxford’s landlords invest for the long-term, free them to continue to look after their tenants interests, to re-invest returns in the fabric of their properties, and allow them a reasonable long-term return on investment.  You won’t regret it!

Kind regards,

Bill

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