9:00 AM, 1st February 2013, About 9 years ago 4
Mark Garner, a regular reader of Property118 has very kindly written in to share these thoughts on simple changes the government could make to incentivise the necessary growth of the UK’s Private Rented Sector.
What do you think?
To increase the size of the UK PRS the Government need to change their current policy on:-
Pensions – Allow SIPP’s to purchase residential property. Isn’t it crazy that we can invest our retirement funds into high risk Caribbean resports but not into providing much needed housing in the UK?
House Planning – more houses need to be built on Brown then Green Belt. Perhaps the UK government should look at America and perhaps introduce ‘Zoning’ so then some developments could just be built for rental.
Taxation – introduce CGT roll over relief for private landlords and treat property rental profits as earned income not unearned income.
To move this forward I think we need to be working with the all the large housing groups who work closely with tenants as the Government will not see pleasing landlords as a vote winner but may see helping to provide homes for an ever growing number of tenants as a better vote winner.
In most respects landlords are treated like a business with all the current letting legislation (over 100 different pieces of legislation). However landlords are not allowed the same tax treatment as other business owners. This is a ridiculous situation, especially when the Government need to promote growth in the PRS to house an ever growing demand to rent from the UK population. I am all for growing the PRS to house people who wish to rent but all the current government policies (taxation and planning polices in particular) are stopping the growth so the result, sadly for tenants, yet good for existing landlords is that rents are rising.
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