Sian Berry, the Green candidate for Mayor of London, has written to George Osborne in advance of his Autumn Statement on 25 November calling on him to scrap the tax relief which landlords can currently claim on mortgage interest.
Berry says in her letter: “Using the proceeds from the cut in tax relief for landlords to restore the level of grant available will make a real difference to the viability of new social housing in cases like the vast King’s Cross Central development in my own borough of Camden, and could provide 16,000 additional truly affordable homes over the period of the next Mayoralty.
“I urge you to consider this measure, which could go a long way to helping ensure that the workers London depends on can afford to stay in the city.”
Commenting on the letter she said: “London is in the grip of a housing crisis caused by the kind of soaring price rises that the subsidy for private landlords fuels.
“The Chancellor took a step in the right direction when he restricted mortgage interest tax relief to the basic rate of income tax rather than the higher rate. He now has a chance to go further. Abolishing the subsidy by cutting mortgage tax relief completely would cool the housing market and ease the crisis, and the money gained would enable local authorities to provide more affordable housing.
“If he wants to do the right thing it’s a no-brainer.”