The tax and regulatory changes introduced in recent years have led to an increase in the number of landlords exiting the buy-to-let market, while others have focussed on switching to short-term lets, as a consequence of skewed policy that favours holiday homes over long-term properties to rent.
A fresh report published today by ARLA Propertymark suggests that almost 500,000 properties could be left unavailable for longer-term rent as more landlords exit the market in favour of short-term lettings.
The Residential Landlords Association (RLA) argues that this is primarily because the tax system favours holiday homes over the provision of long-term homes for private rent, illustrated by the fact that the government is phasing out mortgage interest relief for landlords to the basic rate of income tax, although this measure does not apply to furnished holiday lets.
David Smith, policy director for the RLA, said: “Today’s report highlights how inconsistent the government’s approach to the rental market now is.
“On the one hand the Ministry of Housing wants to encourage more landlords to offer properties to tenants on a long-term basis. On the other hand the Treasury has a tax system which makes renting out holiday homes more appealing at a time when demand for homes to rent is outstripping supply.
“What we need is a tax system that supports and encourages the majority of hard working landlords doing a good job to provide the long-term, quality rental accommodation tenants desperately need. We call on the Chancellor to do this in his forthcoming Budget.”
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500,000 fewer properties to rent is what HMRC means by "no impact on the rental market" when Sec.24 was announced in 2015?
This article is very true by ARLA, this is what I have been at pains to point out for over a year. The Government say they want to have stable long term Tenancies but have introduced policy's to do the exact opposite, are they really in charge of us ?. However there is far more to it than that. We know s.21 is going, s.24 gone, Deposit debacle by Shelter in 2007, How to Rent nonsense by Shelter changed 9 times in just 5 years (might even be another one I don't know, check before serving or application invalid) Right to Rent by Government, De-regulation Act by Shelter 2015, we know there is loads more and we are weighted down with paper work our labor is free, can we not even have minimum wage for all this unnecessary work imposed on us. I don't see anyone else working for nothing. Thousands of Landlords are and have exited the market, thousands more have switched to Airbnb, hence 80'000 rooms on short term platform in London alone so are not available for normal renting to regular renters, all those thousands of LL's combined are not available to offer normal regular lettings not alone longer Terms Tenancies. The point the Articles keeps missing is the outrageous HMO schemes costing me thousands of £'s pa. This don't apply to related people, what ever on earth that's got to do with anything I don't know it seems those people are making the rules to suit themselves and their friends. This is also again like the rules for Short Term Lets virtually nothing applies and get double the income as us, incidentally I don't let rooms but have several HMO's that I never wanted which are imposed on me by Government & Local Authorities, that make no contribution to the schemes whatsoever. LL. pays for all including licensing fees, any extra visit Council makes charged @ £83 per hour, huge amount of compliance work imposed with those HM0's that don't apply to related persons or short term lets, then so many regular Certifications of Electric, Gas, Emergency Lighting, fire alarm systems etc. I could go on all day about the damage they have done to us but have so much to do and I am not paid like Council staff to sit there and who have no responsibility.
Why can't government even tell the truth about the current Deposit Scheme, in their Election campaign they were saying that Tenant were waiting several weeks get their deposit back, when we all know the Landlord has only up to 10 days to give it back after Tenants vacating the property by Law as I understand it, so whats all this about another rubbish unworkable Deposit Scheme being imposed on us.
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