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The Residential Landlords Association say the country faces a net loss of 133,000 homes for private rent over the next year - and only a radical rethink on lettings taxation can avoid it.
That’s the view of the research wing, PEARL, which says that government figures themselves show a loss of 46,000 private rented properties in England alone between March 2016 and March 2017.
The RLA says that based on questioning over 2,600 landlords, no fewer than 84 per cent have seen tenant demand increasing or at least remaining stable - and this is despite some years of policies which, the association claims, have been geared to increasing owner occupation.
It says much of the reason for the fall in supply has been down to the start of the phased elimination of mortgage interest tax relief for buy to let investors, and the introduction of the three per cent stamp duty surcharge on additional homes.“The demand for private rental homes shows no signs of slowing up, despite efforts to encourage home ownership. The government was always mistaken to place homes to own and to rent in opposition to each other rather than seeking to supply more homes in all tenures” explains RLA policy director David Smith.
“The vast majority of landlords are individuals and small businesses, providing good housing to their tenants and supporting local economies. We need to support and encourage them to provide the long term homes to rent needed.
“The government should use taxation more positively and not penalise landlords who are contributing to badly needed homes to rent.”Property Tribes members can enjoy a 25% discount off RLA membership and tickets are also now on sale for the Future Renting Conference in London in September.The more landlords who join a landlord association, the more power and voice we will have at a Government and policy level.SEE ALSO - 1 in 4 landlords to exit due to Section 24UP NEXT - Rents expected to rise as landlords exitDON'T MISS - What is Section 24 for landlords?NOW WATCH:
Vanessa Warwick Landlord and Co-Founder of PropertyTribes.com **If you have got value from Property Tribes, find out how you can support it in remaining a free to use community resource**
The Residential Landlords Association say the country faces a net loss of 133,000 homes
and on the other hand The Govt might say that's a good thing
133,000 more home for FTB
Of course as Landlords on the ground it will cause a shortage of Rentable property but the Govt seem to miss that point
this can be good news and bad news depending which side of the fence you are on.
Learn Change and Adapt ?????
All comments are for casual information purposes only. If you wish to rely on any advice I have given please ensure you obtain independent specialist advice from a third party. No liability is accepted for comments made.
It is great news that there are fewer rental properties
Great for LL...................................not so good for tenants!!!
Let us hope that the PRS shrinks even more.
It will mean LL can charge more for what will be a rare commodity.
I predict tenants will be bidding soon to obtain a valuable tenancy.
Thankfully the days of ever increasing rental stock are over.
(*Moderator note: Content removed*).
Govt indication is that it is not minded to increase the RARA
Not that any LL will take any notice.
Increasingly the room rates will rise.
A shrinking PRS is great news for existing LL and for those using the lodger strategy.
Let us hope there continues to be a massive reduction in the PRS.
There will be massive knock on effects on GDP as LL generate enormous amounts of economic activity just by being LL.
So less taxes for Govt and all because Govt panders to a very small part of the SE where whiney GR wants to live and buy.
GR is costing the UK GDP billions of pounds of economic activity.
It’s a ridiculous circumstance. I regularly do battle with idiots, mainly on social media or newspaper forums, who think losing 133,000 houses to rental supply is a GOOD thing, no doubt because they assume that means 133,000 new homeowners.
This is of course a false assertion. It does not mean those houses lost are wanted, or afforded, or able to be funded by homeowners. What is does definitely mean is that people trying to access rental houses will find it much harder, and potentially that some figure up to 133,000 could be housed families being made homeless.
I fear for the sanity of both haters, the govt, and even the self-appointed housing ‘experts’ in the media, for they remain willingly blind to the obvious consequences.
This new data shows the importance of the private rented sector:The number of people living in homes in the private rented sector in England had doubled in the last 20 years with a rise in middle aged people renting, an official survey shows.
However, most people renting a home are happy with it and the majority still aspire to owning their own home, according to the latest additions to the English Housing Survey published by the Ministry of Housing, Communities and Local Government.
Overall, it shows that the private rented sector remains the second largest tenure in England, accounting for 20% of households in England, with the number doubling from 2.1million in 1996/1997 to 4.7 million in 2016/2017.
The sector grew a little between 1996/1997 and 2006/2007, but growth accelerated after that with over two million additional households added to the sector. However, growth appears to have slowed in more recent years.Full/source story
Purchases in the buy-to-let market continue to be constrained by recent regulatory and tax changes, falling by 9.8% in May compared to the same month in 2017, according to UK Finance data.
By value, purchases were down by 22.2% year-on-year to £0.7bn.Full/source article
and I would add we are only at the start of S24
Just think what it will be like in Two Years time
Well that certainly would set the cat amongst the pigeons if we had a 4-5% reduction in the size of the PRS in just two years.
....also the geographical distribution is likely to be skewed to low yielding / higher geared / higher capital gain areas - i.e. the South East
(however I'm getting plenty of people here in Birmingham applying to me saying their LL is selling up)
Even if only half of people that say they're going to sell actually do (due to the stickiness of disposing of property) - then by the time s24 is implemented fully we could easily be looking at a 10% reduction from the peak.Whether that would mirror the reduction in demand from mainly EU citizens not coming to the UK in such large numbers - or create a bigger more widespread shortage only time will tell I guess.
DISCLAIMER just my personal opinion - for legal advice consult a qualified professional grown-up.
So where have the supposed 133000 properties gone ?
2nd homes ? I doubt very much
Other Landlords ?
Holiday homes / S A ?
Someone must have bought them or are they all waiting to be sold ?
That's a very good question.
If landlords are selling to other landlords or FTBs then overall there's no ongoing harm done, the available housing remains the same.
If these properties are going to FHL/SA/Airbnb they are being removed from the available housing. Other reports seem to indicate a current growth in the Short Term Let market.
The shortage is there I feel but I can only speculate as to why
The outcome for me on the ground goes like this.............
I was getting £540 pcm which is the 1 bed LHA rate for over 35 `s
LHA tenant moves out . Council says no worries we have a replacement for you
I said ok but LHA is a troubled beast now so I want 675 please . They said yes!
So they have just offered me an attractive £135 pcm top up pcm which is a healthy 1620 pa extra
So they take it away with S24 tax and hand it back to me with LHA top ups to pay that tax
The LHA freeze was a complete waste of space if they are going to sneak in top ups
They rob Peter to pay Paul
Someones messed up the system and tinkered with stuff they don`t really understand
Jonathan Clarke. http://www.buytoletmk.com