No Rent Controls In England & Tax Reforms
Propertymark has welcomed the pledge by Housing Secretary Michael Gove not to introduce rent controls in England.
The trade body says such rent controls in England discourage investment and are in any case ineffective at regulating rent levels.
Propertymark says where rents have risen, the recent increases in costs and legislative requirements that landlords face, along with an array of tax changes have placed additional financial burdens on landlords.
This is why the group wants the Westminster government to go further by reintroducing tax relief for landlords and reduce the three per cent levy on buy to let purchases to get more property to rent on the market.
Furthermore, the Second Reading debate of the Renters Reform Bill – a week ago today – shone the spotlight on the need for a wider government review of all taxes impacting private landlords to encourage investment in the rental sector.
Levelling Up Secretary Michael Gove stated in a letter to the Select Committee on Housing that he rejected a call for Valuation Office Agency data to be made public so some type of assessment could be argued as to what constitutes a ‘justified rent increase.’
He explains: “Rents in the private rented sector should be agreed between landlords and tenants, and it is not for government to intervene in this. We are clear that landlords must be able to raise rents in line with market prices, but that rent increases which are significantly above this should not be used as a means of backdoor eviction.”
Timothy Douglas, Head of Policy and Campaigns at Propertymark, comments: “Propertymark sees no advantages in restricting rent increases or introducing any rent stabilisation measures.
“Flexible tenancies and rent prices driven by market forces have led to the success of the private rented sector across the UK.
“It is vital that landlords are not deterred from the market and have finances to invest and improve property standards. Increasing the supply of properties, rather than capping rents will ensure rents fall and agents and their landlords stay in the market.”