Give tax breaks to landlords to ease housing crisis

by Property118.com News Team

16:31 PM, 13th June 2012
About 8 years ago

Give tax breaks to landlords to ease housing crisis

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Give tax breaks to landlords to ease housing crisis

Buy to let landlords should get extra tax breaks to encourage them to provide more homes lower rents and more stable tenancies, according to a new study.

The action is needed to help a predicted 1.5 million young renters find a home because they are unlikely to ever afford to buy a property, says social care charity the Joseph Rowntree Foundation.

Research for the study claims many young people will never own a home, while many more will have to wait before to buy.

The report, Housing options and solutions for young people, forecasts an extra 500,000 young people will be forced to stay with their parents well into their 30s, taking the total number of young people living with mum and dad to 3.7 million by 2020.

By then, the number of home owners under 30 will nearly halve, with just 1.3 million expected to own their own homes. The number of homeless young people under 25 is predicted to rise to 81,000, with further increases expected.

The influx of young people chasing private rented homes means young families, poorer and vulnerable people will compete for tenancies, with around 310,000 more young families looking to rent in 2020.

To cope with the housing squeeze, the report authors recommend:

  • Tax breaks to encourage landlords to charge affordable rents and longer tenancies
  • Local letting agencies to aid young people searching for rented accommodation
  • Looking at ways to provide a greater number of affordable homes

The foundation’s Kathleen Kelly said: “Our badly functioning housing system will see those on the lowest incomes really struggling to compete in the competitive rental market of 2020.

“Renting is likely to be the only game in town and young people are facing fierce competition to secure a home in what is an already diminished supply of housing.

“With 400,000 vulnerable young people, including families, on the bottom rung of a three-tier private renting system we need to avoid turning a housing crisis into a homelessness disaster.”



Comments

1:26 AM, 14th June 2012
About 8 years ago

Ironic isn't it. The government of the time introduced the LAQC structure many years ago to incentivise the private sector to provide housing because the Govt did not want to be a landlord (i.e. state housing). So, 3 years ago the govt revoked the LAQC because the housing market was overcooked. This shortage was totally predictable and yes, property investors do need incentives to encourage them to take the risk.

Mark Alexander

7:57 AM, 14th June 2012
About 8 years ago

LAQC?

Are you thinking of the New Zealand Loss Adjusting Qualifying Companies? They aren't around here in the UK, never have been so far as I know.

Maggie Dale

10:35 AM, 14th June 2012
About 8 years ago

I had a lovely tenant living in a studio flat, She was about to get married but I had to give notice as the flats were single occupancy only. I wanted to purchase a house for her and her husband and fund it by selling the flat but the financial loss which would have been incurred by CGT meant that I could not afford this. It is about time governments looked at making tax breaks available in these sorts of cases

Lynne Davis

13:54 PM, 14th June 2012
About 8 years ago

I'm not sure that tax breaks will be much help when it's so hard to find competitive mortgages and insurance where the conditions allow HMO use or letting to tenants on housing benefit.

14:07 PM, 15th June 2012
About 8 years ago

More tax breaks for landlords, give me a break. Landlords already have tax advantages over first time buyers and go for the same properties. Further tax advantages will just trap our future generations into the rented sector.


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