Tenants Have Been 'Hit Hard’ By Btl Tax Clampdown
The government's buy to let tax clampdown has hit tenants the hardest and there are clear warning signs of a looming rental crisis that are being ignored, two organisations warn.
The National Landlords’ Association and the Residential Landlords’ Association were responding to figures published by the Royal Institution of Chartered Surveyors (RICS).
In their report, RICS says that tenant demand is growing across the UK, but the number of landlords who choose to enter the market is dropping.
They say that there's been another drop in the number of instructions from landlords – and this dates back to the middle of 2016 which is the longest it's ever recorded.
RICS also points out that tenant demand will lead to rent rises across most UK regions in 2020.
‘The government’s attack on the private rental sector’
In a statement, the landlord organisations said: "The government’s attack on the private rental sector is undermining its efforts to boost homeownership.
“By making renting more expensive and choking off supply, it's the tenants who will be hardest hit.
"Ministers should wake up to the reality of what their tax measures are doing to the rental sector and help landlords in providing new homes we need for private rent."
The NLA and RLA also criticised the Chancellor's recent Budget and its failure to boost private rental home supply.
They say that it is now more difficult for tenants to save up to buy a home of their own.
This has been underlined by the former Bank of England policy committee member, Prof David Miles, who says that first-time buyers have not been helped by the squeezing of rental property supply and the driving up of rents.
Call for the Chancellor Rishi Sunak to scrap stamp duty
Now the RLA and NLA are repeating their call for the Chancellor Rishi Sunak to scrap stamp duty on additional homes when they are being purchased by landlords for the supply of rental homes as this would boost the net supply of homes and help bring back properties that have lain empty for a long time.
Among the critics of Chancellor’s Budget was James Kirimy of Spotahome, who said: "We were hoping for news about the rental market, particularly addressing concerns that have led to the appetite of landlords to dwindle in the UK.
"We would have liked to see a focus for both landlords and tenants so the rental sector continues to thrive and is supported by landlords supplying much needed homes for rent for those who would struggle otherwise."