A positive vision for the PRS

by Property 118

13:39 PM, 30th October 2019
About 11 months ago

A positive vision for the PRS

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A positive vision for the PRS

Too much attention is given to the idea that the sector is a problem which requires management. Instead the Residential Landlords Association argues that what is needed is a positive, ambitious programme for the sector which supports tenants and good landlords whilst rooting out the crooks who have no place in the sector.

The RLA’s manifesto for the private rented sector encourages political parties to build on the positive developments in the market. This includes 84% of private tenants being satisfied with their accommodation (a higher proportion than the social sector), that private tenants have been living in their current properties for an average of over 4 years and that 88% of private tenancies are ended by the tenant.

Over recent years the private rented sector has become an important source of housing for growing numbers of families with children, older people, the homeless and students and young people who need to swiftly access new work and educational opportunities.

Among the RLA’s key proposals are improving access to justice for tenants and landlords when things go wrong by developing a housing court, supporting vulnerable tenants by ending the Local Housing Allowance cap and ensuring councils have the resources to find and root out criminal landlords using the wide range of powers they already have.

With warnings of noticeable rent rises as a result of the demand for private rented housing outstripping supply, the RLA is calling on all parties to boost supply by scrapping the Stamp Duty levy on additional properties where landlords provide homes adding to the net supply of housing. It calls also for a rejection of all forms of rent controls which the RLA argues would serve only to dry up the supply of homes to rent, reducing choice for tenants and thereby increasing rents overall.

David Smith, Policy Director for the RLA, said:

“For too long we have let the actions of a minority of landlords who bring the sector into disrepute dictate the debate around rented housing. Whilst we must find and root out such people we cannot let it distract from the positive news in the sector.

“The vast majority of landlords and tenants enjoy good relations, with many tenants staying long term in their rental properties. It is important that we build upon this record, ensuring pro-growth policies to ensure a sufficient supply of homes to rent, supporting vulnerable tenants and ensuring tenants and landlords can access justice more quickly if things do go wrong.

“We call on all parties to accept our positive, pragmatic programme for the sector and end the unnecessary scaremongering which is causing many tenants to live in fear.”

  • The RLA’s election manifesto can be accessed at: Click here
  • The Government’s English Housing Survey report for the Private rented sector, 2017-18 can be accessed at: Click here

Page 12 notes: “The majority (84%) of private renters were very or fairly satisfied with their current accommodation and reported higher levels of satisfaction than social renters (80%).”

Page 19 notes that mean length of time in current residence was 4.1 years for private renters.

Page 22 notes that among private renters who were resident in their current home for less than three years 12% said previous tenancies had been ended because the landlord had asked them to move.

  • RICS’ latest UK Residential Market Survey for September 2019 can be accessed at: Click here  It notes:

“In the lettings market, the latest set of results (which form a part of non-seasonally adjusted series) are indicative of demand from prospective tenants rising firmly for an eighth month in a row (net balance of +22%). Alongside this, landlord instructions remain in decline. With demand still outstripping supply, rent expectations for the coming three months remain positive (net balance of +24%).

“Further out, contributors are pencilling in rental growth of approximately 2% over the coming twelve months. Significantly at the five-year horizon, the imbalance between demand and supply in the lettings market is expected to lead to an acceleration in rental growth, which is seen averaging to around 3% per annum through to 2024. In comparison, average price growth projections stand at just over 2% on the same basis.”



Comments

Beaver

11:08 AM, 31st October 2019
About 11 months ago

I agree that a positive vision for the future, one that encouraged both good tenants *and* good landlords would be a good thing.

A positive vision of the future that had a tax framework supporting good landlords would also be a good thing. As this link shows:

https://www.property118.com/private-landlord-tax-vs-that-of-a-private-hotelier/

The present tax framework penalises small private landlords pushing them out of the market or encouraging them to become limited companies (although this needs to be done correctly to succeed).


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