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TODAY'S OTHER NEWS

Buy-to-let tax clampdown has hit tenants ‘hardest’

The Government is failing to recognise clear warning signs that a rental crisis is on the horizon, the Residential Landlords Association (RLA) and National Landlords Association (NLA) warn. 

Figures released this week by the Royal Institution of Chartered Surveyors have confirmed that tenant demand is increasing across the country while the number of new landlords entering the market is falling. 

This extends a run of successive quarterly declines dating back to mid-2016, which is the longest uninterrupted sequence of falling landlord instructions ever recorded. 

The squeeze on supply, coupled with continued demand for properties from tenants, is likely to lead to continued rental increases across the vast majority of regions in the UK during 2020.

The latest market analysis from HomeLet, which takes a regional snapshot covering 12 regions across the UK, shows rents are rising across the country, and this only makes it harder for tenants to save for a home of their own. 

The Residential Landlords Association and the National Landlords Association had hoped to see the chancellor support buy-to-let landlords this week when he made his financial statement.

They had called for Rishi Sunak’s big-spending budget to include the abolishment of stamp duty on the acquisition of additional homes where landlords invest in property adding to the net supply of housing such as new build properties or bringing long term empty homes back into use. They were sadly disappointed in their expectations.

In a joint statement, the RLA and NLA said: “The government is undermining its own efforts to boost homeownership through its attacks on the private rented sector.

“By choking-off supply and making renting more expensive it is tenants who are hardest hit.

“Ministers need to wake up to the reality of the damage their tax measures are doing to the private rented sector and support landlords to provide the new homes for private rent we desperately need.”

Poll: Do you think a rental crisis is on the horizon?

PLACE YOUR VOTE BELOW

  • icon

    I fail to understand why this Government seems to be doing the exact opposite of its published goal!
    They are ruining the issue of rent reasonableness for tenants and making it easy for Landlords to charge a lot more.

    Throwing more tenants onto the streets and into housing poverty.

    Fine for me, I love it with my 3 properties.
    Long may their idiocy last.....

    Carry on boys...Please find something else I can charge my tenants for at twice the normal rate and also for sure, there ain't no one going into my houses without a cash deposit that I have control over.

    If they want something else, they don't get the property. Simple as...I can wait.
    And the more they get desperate, the more I can charge.

    Happy days ahead.

  • icon

    There is a saying '' you don't need an education to be clever '', now most of these boys and girls in government have had the education, private school uni etc, but when it comes to the real world out there they are as thick as 2 short planks, and as David says above there is no shortage of desperate people out there looking for some where to live, so we can pick and choose

  • icon

    "They had called for Rishi Sunak’s big-spending budget to include the abolishment of stamp duty on the acquisition of additional homes"

    And still they ignore the real issue of S24!

  • Paul Barrett

    The big problem with 'just increase the rent' is that there starts to be clarion calls for the even more bonkers ideas like S24 of rent controls.
    Rent controls would destroy the leveraged rental sector along with many other effects.

    So us LL need to tread carefully no matter how justified we may feel by increasing rents to levels where they may only just about cover increased cost burdens and won't even provide for any RTI.
    A delicate balance I feel.

    Basically need to bring the frog tenant to the boil rather than chucking him into boiling water which would be immediately somewhat noticeable and definitely detrimental there and then!!

  • Matthew Payne

    This is the thin edge of the wedge. Renewals will start to increase with C19 set to be here for a few months exacerbating the other policy changes that are starting to have an impact on the high street. Almost a perfect strain of hopelessness for millions of tenants cultured in the conservative policy petri dish. Welcome to the new jobs Mr Jenrick, Mr Sunak, time to find a cure.

  • Paul Barrett

    Unless banks offer forbearance to LL with no effect on credit files there will soon be mass LL bankruptcies and millions of homeless tenants.
    Without rent I can't sustain my property mortgages.
    I DON'T have a magic money tree!!

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