Rents Increase Due To Government Policies
Latest research and data fully backs all those in private rented sector who state that the government’s policies are the main cause for rents increase as landlords have to offset extra costs and less profit.
Tenant demand will always outstrip availability of rented homes and according to the Royal Institution for Chartered Surveyors (RICS), it claims that rents increase by at least 2% over the next twelve months.
The recent tax increases including the lowering of the mortgage interest tax relief down to the basic rate, the 3% extra stamp duty charge as well as the increasing regulations and at times the frankly ridiculous costs of licensing schemes, is having an adverse affect on the number of properties available to rent.
Since 2018, despite all of the council licensing schemes to weed out rogues, only 18 property agents and landlords, together with five companies have been registered on the database of rogue landlords.
Because of only eighteen landlords/agents/companies on the database, an industry bodes is asking whether the the numbers of rogues is nowhere near as large as claimed, or is it that councils are more far interested in getting money from licensing good landlords, rather than getting rid of the cowboys?
Recent data from the government shows that on average landlords have to wait at least six months for courts to award them repossession orders.
A spokesperson for the trade body said “This series of statistics clearly shows the negative impact of government policies. At the end of the day it is tenants who are suffering.
“The drop off in supply caused by good landlords who find operating in the market more difficult means it is increasingly difficult for tenants to secure somewhere to live and they are then faced with higher rents.
“Ministers need to change course and instead of attacking the private rented sector, there should be policies and taxation to encourage growth in the supply of rental accommodation to meet the ever increasing demand.”