Profile incomplete
0:03 AM, 10th August 2023, About 9 months ago 36
Text Size
The lack of housing supply is creating huge problems in the private rented sector, an industry body has warned.
The Association of Independent Inventory Clerks (ACII) blames the Renters Reform Bill and energy efficiency proposals for creating “the perfect storm in the rental market.”
With more and more landlords leaving the private rented sector, many renters will be left in limbo trying to find a place to rent.
Daniel Evans, chair of the Association of Independent Inventory Clerks, says: “Nobody knows how many landlords have left or are about to leave.
“One large firm of accountants, analysing HMRC data reckoned 70,000 landlords exited the private rented sector (PRS) in 2022 and it looks as though the situation is getting worse.
“Every single company that supplies the sector is going to struggle because too many landlords are leaving or have already left, and nobody knows where the new landlords are going to come from.”
Mr Evans believes that one of the biggest barriers to landlord recruitment is the changes in tax regulation.
Since April 2020, all buy-to-let landlords have had to pay tax on all their rental income although they do receive a tax credit worth 20% of their mortgage interest payments.
He says that the government should rethink their tax policy on landlords.
“The first thing the government should do is U-turn on that tax policy. Landlords should be able to offset all their mortgage costs against tax.
“The new rules mean that landlords who pay higher rate tax have had to pay substantially more and some who were in the lower band have been pushed into paying the higher rate.
“Profits have been squeezed for many landlords and high tax rates aren’t going to attract new ones.”
Mr Evans says the other problem is that the energy efficiency requirements have not yet been published.
Though the plans have not been made into law, ministers have previously proposed that by April 2025, newly rented properties in England and Wales will need to meet a minimum EPC standard of C – tougher than the current E standard.
The regulation is also slated to apply to existing tenancies from 2028.
He says many landlords will have already left the PRS due to the proposed changes.
Mr Evans says: “The problem here is that a lot of landlords who were worried by this rule change may have already sold up and left or are in the process of doing so,”
“Any slight relaxation of the rules now isn’t going to tempt new landlords in. We have to face facts a lot of our housing stock is old and needs improvement to save energy.
He says the government should be offering financial incentives to landlords to help improve older housing stock which may need energy-efficiency improvements.
“There should be some financial support to achieve these targets. If that was in place, the sector might look more attractive.
Mr Evans says the government needs to build more energy efficient homes to entice new landlords into the sector.
“The bottom line is that we’re not building enough houses. If more rentable homes were built and they already had the energy efficiency standard, then more landlords might consider buying them if they could see a decent return on their investment.
He added: “Landlords have been made to feel like they’re public enemy number one and, for the vast majority of them, that’s totally unfair.
“The PRS is a vital part of the country’s overall housing strategy, if we’re not careful, it’s going to be damaged beyond repair.”
Previous Article
Landlords electrical supply testing?Next Article
Plea to keep landlords in the PRS
Whiteskifreak Surrey
9:12 AM, 12th August 2023, About 9 months ago
Reply to the comment left by Christopher Lee at 10/08/2023 - 20:15
You must realise that export to the EU is at record level only in monetary value due to energy prices.
In volume is about 40% lower, due to small exporters going bankrupt or leaving the export sector.
We lost excellent EU builders, electricians and plubmers who now are helping other landlords in various EU countries.
Lots of excellent EU tenants were lost too. They never trashed the rented properties and always paid on time.
Maybe they were right ro leave this hostile, brexitted country.
And now, having lost all that the Govenment must find money to waste from somebody else. Possibly.
Or possibly the big BTR cronies donations are working their magic.
GlanACC
9:15 AM, 12th August 2023, About 9 months ago
Reply to the comment left by Whiteskifreak Surrey at 12/08/2023 - 09:12
I can't understand all this resistance to BTR companies, it seems a complaint of GR, Shelter and the like (let alone PRS landlords). It doesn't matter how big they get they are never going to supply 4,000,000 homes to rent
moneymanager
10:26 AM, 12th August 2023, About 9 months ago
Reply to the comment left by Tom McGrath at 10/08/2023 - 13:29
This building has German citizens here because their employer has bought a worldvcritical engineering company, they are upskilling British workers, they are doing this as it's easier to export from thevUK than from Germany, the benefit of Brexit?
Swords always have two edges.
Rerktyne
19:39 PM, 12th August 2023, About 9 months ago
Reply to the comment left by Gary Nock at 10/08/2023 - 09:49
In 16th Century Spain they expelled The Moors: sheer religious prejudice. They were great shepherds, wool producers, cloth producers and merchants. They were massive for Spain’s economy. Soon Spain began to feel this as she declined quickly. That’s just one example of stupid politicians who shoot their people in the foot.
Attacking PRS will lead to a drastic drop on demand for plumbers,electricians, joiners, plasterers, decorators, brickies, roofers, suppliers to the trades like B&Q, etc, etc.
And those people will have less to spend: in Tescos, the pub, restaurants, clothes shops, etc etc.
And they will generate less in taxes.
And the NHS and education and police etc will have less funding!
As will all the extra people on benefits.
And crime will rise.
As will misery!
Well done morons!!
Martcole
19:11 PM, 13th August 2023, About 9 months ago
I have some good tenants after the last lot of losers, but these will be my last tenants here in the UK. Will be selling up as soon as they are gone.
It is all getting too complicated and onerous.
Agree with a couple of the other comments, I have mostly always said yes to requests, paint up places between tenants so hate been scowled at as a landlord. I was one of the good guys but it gets harder.
I have a couple places in Oz, 18 and 15 years tenancies, so much easier and equitable there.
Beaver
14:43 PM, 23rd August 2023, About 9 months ago
Reply to the comment left by Bristol Landlord at 10/08/2023 - 19:38
I agree that penalising small landlords (most landlords only have 1-2 properties) and favouring incorporated landlords is very dubious. For many small landlords all they are doing is supplementing their pension. They are not doing anything evil and in most cases they are (or were) doing something socially useful with their capital by providing choice for tenants.