Successive tax measures targeting buy-to-let investors have exacerbated Britain’s rental crisis, according to Foxtons’ CEO, Guy Gittins, as reported by the Telegraph.
Gittins, who leads the London-centric estate agency, highlighted that the lack of government incentives has discouraged private landlords, resulting in fewer rental properties. He emphasised that the housing crisis in the UK has intensified since the pandemic, leading to a significant rise in rental prices.
Gittins attributed this situation to the previous Conservative government’s policies, which he said “created an environment that was not attractive or profitable” for new landlords. He stressed the urgency of addressing the issue, stating: “It needs to be taken very seriously. We need anything that will encourage people back into the private rented sector.
“Ultimately, the UK needs tens of thousands, if not hundreds of thousands, of extra rental [homes] to manage the price growth and make sure it is tempered as much as possible in the medium term.”
Recent years have seen buy-to-let landlords deterred by various tax and policy changes. In the most recent Budget, former Chancellor Jeremy Hunt eliminated multiple dwellings relief, which provided stamp duty discounts for buyers acquiring multiple properties in one transaction. This followed the introduction of a 3% stamp duty surcharge on second homes in 2016. Additionally, the new government has committed to reinstating Rishi Sunak’s plans to ban no-fault evictions.
Gittins is not alone in his concerns. Charlie Bryant, CEO of Zoopla, told the Telegraph that tax increases, regulatory burdens and high mortgage rates have made private landlordship less appealing.
The question is… is anyone in government actually listening to the reality of the situation for BTL investors / landlords, and, in my opinion, how straightforward it could be to make changes and reverse decisions, which would support a positive influx and assist in bringing more homes, albeit rental ones, to the market. Lets not forget that, although many like home ownership, many also like the option of renting.
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Sadly they live in a bubble and see selling as an CGT earner,and so the big stick approach to the wealthy capitalists as they see Landlords is the Labour way.
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Govt view will, quite simply, be to get more units built and put owner-occupiers in them. For each new owner-occupier you take 1 person less in PRS / social sector.
I’d love more landlord-friendly policies but cannot see any scenario in which this Govt will pursue them.
Look forward to being proved wrong.
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This has been a slow train coming. Local authority houses sold off in the 80’s, the rental sector increasingly privatised, landlords beaten senseless by government, banks & lobbying groups and – hey – these landlords realise they have no great obligations to anybody & cash out. Whether it’s housing, water companies or greedy bankers – privatisation has its price & WE’LL be picking up the ultimate bill.
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One doesnt mention the rise and rise of huge flatted BTL schemes-tomorrows gettos.
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Few private landlords are actually making a profit today on their rentals. If this Gov. do increase CGT which is likely, there is no incentive for anyone to even think of entering the buy to let market.
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