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Government policy is deterring landlords from providing long-term homes to rent

A growing number of buy-to-let landlords are switching to short-term lets, as a consequence of skewed policy that favours holiday homes over long-term properties to rent. 

The warning comes as new figures show that Airbnb accommodation now accounts for around a quarter of all property listings in some parts of the country. 

This follows a study published by ARLA Propertymark which 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, commented: “Government policy is actively encouraging the growth of holiday homes at the expense of long-term homes to rent which many families need. This is completely counterproductive, making renting more expensive and undermining efforts to help tenants save for a house of their own.

“The Chancellor must use his Budget to give tenants a better deal by supporting good landlords to provide the homes to rent that they want to live in.”




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Poll: Are you thinking about potentially switching to short-term lets?


  • Neil Moores

    So......... a growing number of buy-to-let landlords are switching to short-term lets, as a consequence of skewed policy that favours holiday homes over long-term properties to rent.

    The famous phrase "No Sh*t Sherlock" springs to mind!

  • Suzy OShea

    it just goes to show how the government has lost and continues to lose tax revenue from companies moving to EU countries as brexshit hits! So now they are scraping the bottom of the barrel in trying to scare up more tax from private landlords, many of whom run their properties on a shoe string!



  • icon

    If yo are going to troll at least learn what you are writing about.

  • icon

    Duh, the whole point of all the tax changes and regulations was to shrink the supply of ordinary letting properties in favour of company BTL and anything else that wasn't being targetted by tenants' organisations. And at the same time to fill the depleted tax coffers at the expense of landlords and tenants. There is a scientific rule called Le Chatelier's Principle which basically says that if you exert pressure on one side of an equilibrium, then the equilibrium will shift to compensate. The same applies to any kind of economic activity, including the rental industry.


    PM you seem to be the opposite of what is expected of an agent. You are a thinker and can draw on information. I suggest that you investigate Occams Razor. You could add this to your repertoire.

  • icon
    • 24 February 2020 18:40 PM

    If the Govt wants to stop vast numbers of rental properties going to short-term accommodation then it will need to reverse the bonkers S24 policy.
    It will also need to abandon abolishing S21 and abolish the SDLT surcharge.

    It could also very usefully enhance the eviction process to get rid of especially rent defaulting tenants in timely fashion as opposed to the existing 10 month S21 process.

    It was surely obvious to Govt that short-term accommodation was something that many LL would turn to.
    S24 is unaffordable by many LL and so naturally they have turned to methods to find a way to continue in business.


    Very true Paul, but do you really think for one moment anyone in government are listening , or even want to listen

  • icon
    • 24 February 2020 21:09 PM

    @andrew townshend

    No of course NOT.
    This Govt is simply NOT for turning.
    It needs a scapegoat for its dysfunctional housing policies.
    Attacking LL will never be that electorally damaging for Govt.
    So LL will continue to bear the brunt of approbrium as to why there are housing issues in the UK.

    It would mean a massive loss of face for Govt if they were finally forced to admit that their policies on housing and especially the PRS were bad for the economy as a whole.

    Personally I do NOT intend to remain a whipping boy for the Govt so I will be giving up on the AST lettings market.
    It no longer makes any business sense.

    Ultimately of course when many LL have gone it will be the tenants that will suffer.

    This is what has happened in Ireland.
    Rents have increased by 50% and homelessness is now endemic.

    Social housing could house those that LL used to house but there is no seeming ambition to build the millions of social homes that are desperately needed.

    All I know is I will be sitting on the sidelines immune from all the anti-LL legislation as I hope to be a lodger LL in my hoped for PPR.
    My lodger income will NEVER exceed the current RFRA of £7500 whether I have 1 or 3 lodgers.
    This as including me I will avoid Mandatory HMO Licensing for my PPR which will hopefully have 4 bedrooms.
    If Additional Licensing ever came to be imposed on PPR then I would only have myself and another lodger..........................................officially anyway!!!!

    LL can expect a lot more attacks on them from Govt as attempts to eradicate small LL continue.


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