Chancellor Philip Hammond has missed a “prime opportunity” to halt proposed mortgage interest relief restrictions for landlords, according to a Liverpool expert.

Following the Chancellor’s Spring Budget announcement, Paul Nicholson, managing director of Luxor Group, says the new tax changes could discourage landlords from investing.

The Chancellor’s first and last Spring Budget avoided any mention of housing or the proposed tax changes.

Ahead of the budget, Paul had called on the Chancellor to reconsider the forthcoming buy-to-let tax changes, saying that the government should support a “thriving rental market which can benefit the wider economy”.

From next month, buy-to-let landlords will be subject to reductions in mortgage interest tax relief from 45% to 20%.

Under the new rules landlords will remain able to deduct repairs and legitimate expenses from their taxable income, but will only be able to offset a portion of mortgage interest costs against tax.

Speaking after the Spring Budget was announced in parliament, Paul says: “The Spring Budget was a prime opportunity to reverse the impending plans to restrict mortgage interest relief for landlords, or at least consider the concerns many landlord groups have raised.

“It seems it’s full steam ahead with the tax changes which will likely discourage landlords from investing in the property market.

“The most welcome announcement was the delay in the implementation of the Making Tax Digital programme, as landlords will now have an extra year (until April 2019) to get to grips and prepare for the new digital system.”

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