asked the Minister for the Environment if he will give an estimate of the additional employment in the building industry currently being generated by the section 23 tax relief scheme on new rented buildings; the way in which he calculated this figure; and if his attention has been drawn to the detrimental effect of this scheme on the buyers of new houses for purposes other than investment, in particular, in the case of young married couples trying to acquire their first house.
Written Answers. - Tax Relief Scheme.
73.
A reliable indication of the additional employment generated in the building industry by the section 23 type tax relief scheme is dependent on the number of units rented in accordance with the terms of the scheme. This information will not be available until such time as the related tax claims are made by investors.
The dwellings most sought after by investors tend to be concentrated in relatively restricted areas, largely where there is a particular demand for private rented accommodation. Young married couples are not correspondingly restricted in the choice of area in which they buy a new or an existing house. Whether it is a new or an existing house, they are eligible for mortgage interest relief and, in the case of first time purchasers of new houses, a £2,000 grant from my Department. I do not accept that the section 23 incentives have a detrimental effect on new house buyers.