Government urged to hold off on further buy-to-let interventions

The Government is being urged to hold a moratorium on further buy-to-let interventions after analysis found the market has swung in favour of large institutional landlords.

Research by the Intermediary Mortgage Lenders Association (IMLA) – based on the Government’s 2018 English Private Landlord Survey – warned that further changes could affect rental supply and mean higher rents for tenants.

IMLA’s analysis found professional landlords, as of the end of 2018, represent 48% of the private rental sector, up from 38% in 2010.

In contrast, the number of single-property landlords has fallen from 40% to 21% over the same period.

This was blamed on a tougher mortgage market, the increasing size of the build-to-rent sector and mainly, IMLA claims, due to Government changes such as additional Stamp Duty and the scaling back of mortgage interest relief making buy-to-let less profitable.

Kate Davies, executive director of IMLA, said: “We are concerned that layers of Government intervention have adversely affected small-scale landlords’ ability and appetite to invest in properties over recent years.

“As increased tax and regulatory responsibilities increasingly disincentivise landlords, we face a possible topping out of the private rental sector (PRS).

“While it’s good to see professional and institutional investors increasing their stake in the nation’s housing stock, the number of one-property buy-to-let investors has fallen by almost half.

“Squeezing the PRS puts the pressure on millions of renters in Britain. We are strong advocates of a fair market with a quality supply of homes. Restricting the PRS risks a lack of supply, rising rents and a fall in the quality of rental accommodation.

“We have repeatedly called for Government to put the brakes on regulating and taxing our nation’s landlords. We urge a more moderate approach to ensure our private rental sector remains strong for the millions of renters who rely on it.”

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  1. James Wilson

    Since when did the IMLA care about private sector rents? Of course they don’t.  What they really fear is a professional private rented sector such as prevails in most developed countries.  Only in Britain so we have this ridiculous amateur army of small BTLers.  The IMLA loves them because they pay high fees, but the Government’s changes have done a great deal of good by squeezing them out of the market – to be replaced by professional managers and owner occupiers.

    1. JMK

      Perhaps you should google Berlin housing riots James.  You might learn a thing or two.

    2. JamesB

      Clearly your not a tenant then who is suffering with huge supply demand issues against them due to  lack of PRS properties available and rents rising

    3. Mark Connelly

      I am going to suggest some of the fairest, caring and easy to deal with landlords in the country came from the group you describe as a “ridiculous amateur army”.

      The PRS sector and tenants who object to being treated like second class citizens  will be poorer without them.

    4. Will2

      Whilst driving up rents. You seem to not understand that fewer landlords means higher rents as you get closer to monopolies. Look at the energy companies as an eg.

  2. Will2

    Because the market has a high proportion of “Joe Blogg” landlords the impact of the current abolition of s21 will take time to impact. It will impact far greater than their attack on previous victims.   Our renters will face more difficulty in securing good accommodation as supply of rentals reduce and sharers will find it harder as some shared property reverts to single occupation owners. I just hope the government convince enough institutional investors they want to be landlords.  If they manage to stay in power after punishing their core traditional voters!  I for one will never vote Tory again.

  3. SJEA

    With the exception of those Landlords that are difficult to contact, for many different reasons, I feel that the approach of the Government to squeeze out of the PRS the smaller Landlords is a big mistake.

    These Landlords, some are accidental Landlords, and others have a few properties to supplement their income/pension take a great deal of pride in their properties and provide quality accommodation. The rental prices will increase as they are taxed and squeezed in every direction by Government and their lack of foresight !

    Give these Landlords an incentive to buy more and provide more quality rental properties – simple !

    And for those Landlords that do not provide quality accommodation, then the Local Authority have more than enough legislative power to ensure that these properties are fit for purpose !

  4. claris

    What the Government has not accounted for, is the need for the PRS in order to mop up tenants, from the lack of social housing. Less property means higher rents. It’s really not rocket science. It’s all very well bashing the few landlords who give the industry a bad name but there are considerably more professional and sensible landlords who act fairly and reasonably. You take away the private sector and you have more people on the street and much higher costs for tenants.

    You want more control of the industry? Set standards and uphold them through the controlling bodies. The Government has no clue about what we do or how we do it., they have never worked in industry and are clueless.

  5. GeorgeHammond78

    ‘Only in Britain so (sic) we have this ridiculous amateur army of small BTLers’ 

    Sorry but any one of those who uses a professional qualified agent is neither ridiculous or an amateur unless the agent is! That’s around 50% of the total, so Mr Wilson, unless you also believe letting agents don’t serve a valid purpose, you’re talking out of the back of your R’s.


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