With the number of homes coming up to let in short supply, Propertymark is calling on the next government to reconsider the way landlords are taxed in a bid to incentivise new investment in the buy-to-let sector.
Demand for privately rented accommodation continues to grow, but fresh data from Rightmove shows an alarming fall in the number of available properties to rent, as more tenants look to renew their existing tenancies rather than move home, adding to the widening supply-demand imbalance in the PRS.
Nathan Emerson, CEO of Propertymark, said: “Propertymark has long argued that the private rental sector needs more houses to stabilise rental prices, but there is a myriad of other factors that can contribute towards making the market more attractive for both investors and tenants.”
The tax relief changes for buy-to-let landlords over the past few years deterred many investors from investing in the private rented sector, owing to a sharp fall in net rental returns, but the real losers have been private tenants.
With many landlords having their profits wiped out, the majority of those who have continued to invest in the private rented sector have been left with little alternative but to recoup their losses through high rents, with tenants paying the price of the government’s tax-grab.
Emerson added: “With a general election coming this week, Propertymark would like to see the next government reform the tax system so that more investors can be persuaded to invest in the private rental sector and lower rents for tenants in the long-term.
“Whilst we support a greater supply of houses, there has to be a sensible deliverable programme mindful of protecting the green belt wherever possible. It would also be wise for them to avoid rent controls which have had a devastating effect on the private rental sector in Scotland.”
Rents hit record high as analysis shows 120,000 rental homes needed
Dream on – after the euphoria is over Labour will eventually turn the thumb screws on not just for Landlords but likely de incentivise developers & building construction with either further punitive tax measures or legislation.
If you think things are bad now …. Just wait!
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Really… Are you sure…?
The FUD about Labour is remarkable.
Every time we get an election we are told that Labour are the party of high taxes.
However, the opposite is true.
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We won’t have long to find out.
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Stop taxing landlords on turnover rather than profit. No other business is taxed on turnover.
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With the popular image of PRS landlords we are not going to get any tax breaks. In fact Government is sure to dream up more ways of extracting cash from us and taking control of our properties as according to popular culture we are all loaded and evil and deserve to be punished. Contrast this with the popular view of tenants as being downtrodden and ripped off while they all keep their places immaculate and always pay the rent on time.
Interestingly lots of tenants are staying put, could this be that they could not afford to pay market rent elsewhere as their grasping landlord has slipped up by not putting their rent up at every opportunity?
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I didn’t increase rents for 5 years [yes, stupid of me!]. I’ve since increased by 9%, twice, and still don’t make a profit. So, I’m selling, with one remaining. It’s now just below market rent, and the tenant has had the benefit of 5 good years of cheap rent, yet she’s constantly asking for things to be done. This week she says the carpet is dirty and smelly and wants it replaced throughout. She says she’s tried to clean it, but the pictures show she did a poor job. Why is that my problem?
If she owned the apartment, it would be her responsibility. But because she rents [at a low rent] she believes she is entitled to everything from me.
I will inspect the apartment and may agree to a professional clean. Otherwise, the next thing she gets from me will be a S21.
I used to be so caring towards tenants. Not any more. This government has made me act this way, and the next bunch will be worse!
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Issue a S21 today. You may not be able to on Friday.
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