Tax Specialist Tells Government Stop Laying Boot Into Landlords
Government told to lay off landlords by a leading tax and advisory consultancy.
The consultancy says that if the government continues to burden the PRS with its ever increasing legislation and tax rises then it will only end up with good landlords leaving the sector further increasing the housing crisis as decent rentable ‘residences’ will plummet.
Heather Powell, Head of property and construction at the firm, says: “Any reduction in the number of homes to rent is bad news for the UK economy as affordable accommodation is essential if employers are going to fill the 1.295 million job vacancies reported at the end of March 2022.
“It is critical that the government ensures that the [upcoming] Renters Reform Bill, does not reduce the supply of good, safe rental properties any further.”
She continues: “Average rent in the UK has increased 10.6 per cent in the year to May 2022, whilst rent in London has increased by 15.7 per cent.
“London rents are now an average of £1,832 per month – equivalent to a salary of £27,000, and the householder needs to pay for utilities, council tax, food, and travel on top."
“Those working in retail and the leisure and hospitality industries are really struggling to find affordable homes, and employers in these sectors are unable to recruit staff.”
Powell adds: “Agents have reported that the number of rental homes has almost halved since 2019. Research has shown that this a result of the sale of properties by ‘Buy to Let’ landlords due to the regulatory and tax changes over the last 10 years.”
Following the White Paper’s appearance it is expected that the Renters Reform Bill will be passed before the end of the year.
Powell backs some of the provisions such as clamping down on rogue landlords, clauses to stop unfair rent increases, making sure that rented housing is safe and ‘fit for purpose’, but she argues that BTL landlords need to be safeguarded as well.
She suggests: “If ‘no fault’ Section 21 evictions are to be abolished the Act needs to ensure that Buy to Let Landlords have the right to take possession of their properties when their situation changes, with appropriate notice to tenants.
“Renters need rights to ensure Rogue Landlords are required to provide safe, secure homes but it is critical the responsible landlords are not driven away from the sector, the homes they provide are an essential element of the country’s infrastructure”.
