The government policy for rented housing is failing, according to a string of data released by a number of organisations and letting bodies, discusses Andrew Luxton, partner in charge of Stags Lettings department.
The Royal Institution of Chartered Surveyors is warning that private sector rents are set to increase by 2% over the next year as a result of the demand for such housing exceeding supply as landlords disinvest from the sector.
This follows recent tax increases including restricting mortgage interest relief to the basic rate of income tax and a 3% Stamp Duty levy on the purchase of extra housing. This series of statistics clearly shows the negative impact of government policies.
Unfortunately, good landlords are struggling to operate in the market and are being forced to increase rents, making it more difficult for tenants to secure somewhere they can afford.
According to the English Housing Survey, there are now 4.7 million households in England in the private rented sector, compared to 3.9 million in the social rented sector. This is an increase of 52% in the last decade alone.
Unless the Government quickly realises the important part that private landlords play in providing accommodation within the private rented sector, the situation for tenants is only likely to get worse in the coming years. It can only be hoped that the forthcoming Budget might include some small if not significant measures to readdress the balance.
If you require further advice in relation to any aspect of letting and/or managing your property, or if you are considering a buy-to-let investment, please contact your local Stags Lettings office today.
