Buy-to-let landlords are currently in retreat in the housing market, leaving many tenants struggling to find suitable rented accommodation, new analysis released by the Office for Budget Responsibility (OBR) shows.
In its Economic and Fiscal Outlook published yesterday, the OBR warned of “subdued growth in residential investment.”
The assessment comes following a string of tax hikes on private rented housing, including a 3% stamp duty surcharge on the acquisition of additional homes to rent and restriction of mortgage interest relief to the basic rate of income tax.
Alan Ward, chair of the RLA, said: “Today’s assessment by the OBR demonstrates the folly of taxing the supply of new homes to rent.
“It is more important than ever that we recognise the dynamic role the rental market can play in swiftly responding to the country’s ever changing housing needs.
“The government should come forward with a package of pro-growth tax and planning policies to support private landlords who want to invest in the new housing the country needs if renters are to be able to find the accommodation they want.
“The build to rent sector is not delivering at the rate required and in the past private landlords have delivered three out of five of all new homes.”