Call for landlord tax incentives as social housing complaints soar

A shocking 474% increase in complaints about substandard living conditions in social housing has sparked urgent calls for a stronger private rented sector.

Industry body Propertymark points to the alarming figure in the Housing Ombudsman’s ‘Spotlight Report: Repairing Trust’, which compares data from 2024/25 to 2019/20 to expose deep-rooted issues in the maintenance of social homes.

The organisation says that a comprehensive review of taxes affecting private landlords is now necessary – including scrapping mortgage interest tax relief restrictions and reducing additional levies on BTL properties.

The call comes after the Ombudsman’s report warns that the government’s goal to build 1.5 million new homes by the end of this parliament is at risk due to an ‘unsustainable model for maintaining existing social homes’.

Now Propertymark is warning that without reform, Europe’s largest social housing stock could face a ‘managed decline’, particularly in areas with the least affordable housing.

Replacing these homes at current construction rates would take more than 60 years, it fears.

Review landlord taxes for investment

Propertymark’s chief executive, Nathan Emerson, said: “While it is positive that the UK government has recently announced its National Housing Bank which aims to inject billions into private investment and build an additional 500,000 homes, it is clear that satisfaction rates in the private rental sector are higher than in the social rented sector.

“Therefore, all governments across the country need to keep their fingers on the pulse of the issue of underinvestment and further encourage a vibrant and growing private rental sector by also reviewing the taxes that impact landlords throughout the UK.”

The Ombudsman’s report also highlights a transparency gap, noting ‘the difference in the proportion of non-decent homes reported to the Regulator of Social Housing compared to the English Housing Survey is stark and landlords need to understand what the true picture is.’

PRS is better

In contrast, the private rented sector appears to fare better, with 76% of tenants expressing satisfaction with housing services compared to just 64% of social renters, according to the English Housing Survey.

However, dissatisfaction with complaint handling is an issue for 47% of private renters and 66% of social renters.

Propertymark argues that the private rental market offers greater consumer choice, unlike the rigid allocation model of social housing, where tenants face challenges relocating if dissatisfied with their landlord.

Social housing repair crisis

To address the social housing repair crisis, the Housing Ombudsman proposes a National Funding Settlement, an annual allocation of funds to English local authorities.

That would work alongside establishing a national resident body to rebalance power dynamics between tenants and landlords.

It also advocates for a ‘universal vacant home’ standard, ensuring properties are fully prepared before being relet.

It urges social landlords to adopt predictive repair strategies and improve complaint handling and maintenance culture.