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Private Rented Accommodation

Volume 977: debated on Monday 28 January 1980

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asked the Chancellor of the Exchequer what is his policy for encouraging the private landlord to benefit from letting or sub-letting accommodation in the private sector; and if he will review the present disincentives to letting with a view to accelerating the availability of short hold tenancies as provided for in the Housing Bill.

I assume that my hon. Friend has in mind the suggestions made in the course of the speech by my hon. Friend the Member for Chelsea (Mr. Scott) on the Housing Bill on 15 January 1980—[Vol. 976, c. 1490]—that changes in taxation might have the effect of encouraging residential landlords to make rooms in their houses available for letting. I am not myself persuaded that the present taxation arrangements have the disincentive effects on lettings that have been suggested but the reduction in rates of tax begun in my right hon. and learned Friend's first Budget will improve the rewards for all forms of enterprise.