Increased rights for tenants are coming at a cost – and guess who is paying?

Increased tenants’ rights are coming at a cost – to tenants – as landlords are being driven out of the sector.

The warning has come from Dorian Gonsalves, CEO of Belvoir, which has reported that 72% of its franchisees are forecasting rent rises this year.

Gonsalves said that the reasons given are landlords incurring “considerable” extra charges in the wake of the tenancy fees ban.

They are also facing “punitive tax changes and ever-changing costly regulatory demands”, he said.

Gonsalves said: “Although the Government is trying to help tenants, reducing supply when demand is increasing is resulting in rents rising in those areas where tenants’ wages are increasing more than inflation.

“This means that although tenants may be getting more rights, it is coming at a cost.

“Moving forward, what is important is for the Government to implement a fair system that works for both landlords and tenants.

“Failure to do so is likely to result in a shortage of new rental properties, making it more difficult for tenants to find an affordable home.”

Separately, the UK’s two major landlord organisations have expressed their concern over the “drain” in rental supply.

The National Landlords Association and the Residential Landlords Association – whose planned merger is now weeks behind schedule – issued a joint statement calling for immediate action to reverse the decline in supply.

The statement says that landlords are selling more properties than they are buying, while others are switching to short-term holiday lets for tax reasons.

The NLA and RLA want a fundamental review of the way rental homes are taxed, to ensure that tax policy supports, “rather than contradicts”, government objectives.

Chris Norris, of the NLA, said: “The tax system with which landlords must contend is no longer fit for purpose.

“HM Treasury has constructed a series of barriers to investment which make running an efficient and successful lettings business borderline impossible.”

David Smith, of the RLA, said: “The tax system is failing. It encourages the provision of holiday homes over long-term properties to rent, it deters investment in new housing, and provides no support to those wanting to make energy efficient improvements.”

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  1. Typhoon

    Is anyone in the industry surprised?    NO

    Does anyone in the Government care? NO

    Another totally misguided initiative from people who don’t understand the dynamic of the private letting sector in the Uk.

    But clearly some Government ministers have a had bad run somewhere in lettings, so “let’s get out own back, because we can”


    Some proper support from ARLA Propertymark would be useful.

    1. XML2U


      It’s all very well having a moan here but you’re not reaching the people who have influence. Try contacting the current Housing Minister at direct – if enough noise is made perhaps they’ll take notice.

      1. Will2

        All sounds very good but MP’s do not respond if your are not their constituent. My MP is James Brokenshire and we just call him postman Pat as he never achieves anything for us. The only way of reaching these people is to stop renting in the sector they keep attacking ie move to short lettings/holiday lets if you are in the right geographic areas like LONDON. Commenting on these types of forums at least lets you know you are not on your own.

  2. Thomas Flowers

    Taxing or removing legitimate expenses/costs as income was never going to end well.

    Is this the same as taxing MP’s considerable expenses as income?

  3. James Wilson

    The reduction in the number of ‘amateur hour / I watched a YouTube video and now I am a property expert’ types is hugely to be welcomed.   1) it will professionalise the sector and bring it more into line with international norms, 2) it will end the obsession with ‘get rich quick’ schemes and 3) it will bring more stock onto the market and help to cool prices.


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