Rental Reform Mustn’t Jeopardise Supply
Richard Donnell, research director at Zoopla, is warning the government that future rental reform of the private sector must not jeopardise supply.
He says the lettings market has faced a raft of policy changes since 2016, many of which have led to landlords quitting the sector.
Donnell says these policy changes have also stalled new investment, resulting in static rental supply – this is, he says, a primary factor behind rental growth reaching a three-year high at 2.0 per cent.
Donnell adds: “Further rental reform appears likely and it is important the impact on rental supply is managed in order to avoid an acceleration in rental growth – also known as runaway rents.”
A similar theme has been taken up by Bea Montoya, chief operating officer at Simply Business.
She says: “Buy to let landlords contribute a combined £16.1 billion to the economy through pre-tax spending, and it’s vital that Boris Johnson and his party recognise their importance to Britain.
“A lifetime deposit [as suggested by the Conservatives during the general election] would bring about huge change, but with little detail published, it’s hard to see how this will work in practice, or the impact it could have on landlords.
“We know a quarter of landlords already plan to cash in next year due to government reform, tax hikes, and uncertainty in the market.
“The current tax increases imposed by the government are proving counterproductive, but with no promises to prevent those looking to sell from leaving, we could see half a million homes put up for sale next year alone.”