The rise in the number of buy-to-let landlords quitting the buy-to-let sector in response to a raft of tax and regulatory changes has not led to an increase in rents, according to research by Generation Rent.
Changes to tax on buy-to-let properties has led to a lack of new properties going on the rental market, with many experts forecasting that this would lead to rent hikes.
The Royal Institution of Chartered Surveyors’ (RICS), for instance, recently warned that UK rents are expected to rise by 15% in the next five years due to a lack of supply.
But despite the warnings, rents have actually fallen in real terms since additional taxes and restrictions on landlords were first announced in the 2015 Budget.
Dan Wilson Craw, Director of Generation Rent, said: “Warnings of crippling rent rises have been "confounded. In fact, real rents have fallen by 2.8% in the same period.
“There is therefore no evidence that a reduction in the supply of rented homes has pushed up rents.”
Taxes on buy-to-let have had the desired effect of levelling the playing field between homeowners and property investors.
“Despite scaremongering by the property industry, renters have little to fear from a housing market that is no longer a playground for speculators,” said Craw.
The number of first-time buyers has increased sharply since Osborne’s first announcement on landlord taxation in July 2015, while the private rented sector has shrunk by more than 100,000 units since April 2016, when the first of the buy-to-let tax changes, a 3% stamp duty surcharge was introduced.
Craw continued: “If homes leave the private rented sector, then so do the private renters who are now able to become home owners. The balance of supply and demand is unchanged and so are rents.
“Policymakers should therefore worry less about the impact of reforms on landlords’ investment decisions and focus instead on introducing the kind of regulation the sector so badly needs.
“Any efforts to boost home ownership must be matched by reforms that protect tenants whose landlord wants to sell.
“We need to put an end to landlords evicting without a reason and cushion the blow for tenants who are forced to move through no fault of their own. Requiring landlords to compensate tenants would achieve this while encouraging sales with sitting tenants.”
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Load of absolute twaddle
Dan, how is life in your universe? Rents have risen where I let and I have 2 handfuls of property.
Give it time Generation Rent. You reap what you sow.
Where will these tenants turned first time buyers go when they get evicted for not keeping up with mortgage payments when the next recession comes along?
Will you Dan Wilson Craw be able to explain to a 75 yr old woman that’s lived in the same house since 1984 I will be forced to evict so I can sell your theory that renters become buyers
My advice to Generation Rent advocates stop whining, forget eating out three times a week, holidaying 3 times a year expensive gym memberships and mini breaks every month. Buy a CALCULATOR & save a deposit like your parents and grandparents did. The world does not owe you a living
you missed out the flash cars on the drip, generation rent cannot buy because they are the '' entitled generation ''.
All my rents have been rising some considerably these ‘charities ‘ are dangerous how many people do they house. Join the landlord alliance and fight these corrupt liars spinning endless hate against the PRS.
Agree My Rents Have Been put up and I will continue to increase rents if I get an interest rate rise or maintenance
What is a no fault eviction 99% of tenancies are ended by the tenant. In 15 years of being a landlord I have never evicted a tenant for no reason it just isn’t an issue. Being taxed out of business (s24) means it is unsustainable if you have a mortgaged portfolio and cannot incorporate.
I would take no notice whatsoever ever in figures provided by generation rant, they will publish anything that keeps the attack on landlords in full swing
Plenty reports out there tell the opposite ..
i don't see landlords selling in my area ( east anglia) and rents are increasing here.
Rents WILL rise but agents do not want to push this at the moment given that they need something up their sleeves to soften the blow of Landlord fees increasing once the Tenant Fee Ban comes into force. Once these conversations start to happen rent increases will be higher than normal to cover the taxation changes, increased costs of conforming with never ending legislation and Landlord fees. We'll see who's saying rents aren't rising then!
Generation Rent like the faux charity Shelter do nothing but advocate and lobby policies that reduce the supply of rental properties, push up rents and increase homelessness.
Shelter, who provide homes to no one at all, has an income of £61m mainly from donations spends £39m on salaries £¾m alone goes to 6 executives.
my rents have gone up. I charge more for a 2 bed room now then I do for a 2 bed house ( wont put u/c in houses) .
and set the rent to the risk the bad tenants get charged more
In Scotland the SNP have listened to idiots like this, ignored landlords and rents for the most popular properties are up 25 to 30%, with many chasing each property. This guy and his loony pals are ignoring the consequences because they are hell bent on pursuing their ideology whatever the real life outcomes.
Politically & Economically naive I'd say!! But generation rent are aren't they. Or just used to having it their own way. I can say my rents are all up by 10% to market rates to cover S24. And I can see that climbing over the next couple of years.
When the banks increased the rates I increased the rent, when service charges go up the rent goes up, if the government hit me for more tax the rents get hit. Simple business, overheads increase rent increases.
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