Sir Vince Cable, who chairs the Independent Housing Policy and Delivery Oversight Committee, described the potential tax shift—rumoured to feature in the upcoming Autumn Budget—as misguided and counterproductive.
Backed by a building society, the committee tracks progress on the government’s commitment to deliver 1.5 million new homes and offers independent policy guidance on housing strategy and implementation.
Slapping on National Insurance on rental income could push landlords to raise rents, driving up housing costs for tenants.
At its inaugural session, the committee recognised the urgency of housing reform but raised concerns about reported tax proposals linked to the upcoming Autumn Budget.
Media speculation that landlords may face National Insurance charges on rental income prompted the group to advise a more measured approach.
The chair of the committee Sir Vince Cable, said: “There is no doubt that the housing market is not working efficiently, and property taxation is a significant factor. The case for major reform of the whole property tax system, from Stamp Duty Land Tax to inheritance tax to council tax and VAT, is almost unarguable.
“Recent speculation about piecemeal changes in the Budget for revenue-raising purposes, if they came about, would be a step in the wrong direction. To take just one example, putting National Insurance tax on landlords would be most likely to lead to higher rental charges.
“That is, in effect, an increase in taxation on working people.
“The reality is that wholesale reform is needed to make the market work more efficiently and achieve improvements in housing provision across the country. This is no small task, and we do not underestimate its complexity or the political dimension.”
At its first meeting, the committee outlined several pressing issues driving the housing crisis and stressed the importance of tracking meaningful progress on reform.
Members highlighted the struggle faced by renters trying to save for a mortgage deposit, the need for more suitable downsizing options for older residents, and the stark regional inequalities in access to affordable housing.
Sir Vince Cable emphasised that a well-functioning housing market has the potential to deliver major economic gains. He affirmed the committee’s commitment to advocating for wide-ranging, structural changes to the housing system.
He added: “Properly functioning, the housing market can bring great benefits, improvements to the economy, greater labour mobility, supporting skills development and providing more and better-quality housing, to name but a few.
“As an independent committee our aim is to bring a non-partisan, well-informed, critical, but constructive, eye on developments in this vital part of the fabric of the country. It is in all our interests that everyone has safe, well-designed and built accommodation. We are not there at the moment, and we are committed to doing all we can to help the government achieve those aims.”