RICS say the PRS has become a scapegoat with 1.8million more rental properties needed by 2025

by Property 118

9:52 AM, 4th October 2016
About 2 years ago

RICS say the PRS has become a scapegoat with 1.8million more rental properties needed by 2025

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RICS say the PRS has become a scapegoat with 1.8million more rental properties needed by 2025

ricsThe Royal institute of Chartered Surveyors (RICS) has highlighted the risks in continuing to discourage the provision of new rental property by the Private Rental Sector (PRS). Reported findings from PWC show that there will be demand for an extra 1.8million new properties to rent rather than purchase by 2025.

Recent Statistics suggest 86% of Landlords are not looking to increase their rental portfolios and RICS forecast this slow down to continue for at least the next five years creating a massive lack of future supply for private rented properties.

The level of new investment in rental homes has fallen sharply since the introduction of a 3% surcharge on stamp duty for second homes along with the phased loss of mortgage interest relief for non-corporate purchasers.

RICS head of policy, Jeremy Blackburn, said “we are facing a critical rental shortage and need to get Britain building in a way that benefits a cross section of society, not just the fortunate few.

“The private rented sector became a scapegoat under the previous Prime Minister, and because of that it suffered.

“Yet with increasingly unaffordable house prices, the majority of British households will be relying on the rental sector in the future.

“We must ensure that it is fit for purpose, and the government must put in place the measures that will allow the rental sector to thrive.

“Any restrictions on supply will push up rents, marginalising those members of society who are already struggling.”

“It’s time for Theresa May to get out her hard hat. We are facing a critical rental shortage and need to get Britain building in a way that benefits a cross section of society, not just the fortunate few.”



Comments

Michael Holmes

19:34 PM, 8th October 2016
About 2 years ago

I doubt if Theresa May will be doing much about the current situation regarding the PRS. She has already indicated a tendancy towards interference in the private sector with her 'Industrial Policy' and with Carney still hanging on at the Bank of England,one of the main promoters of the attack on the BTL sector, nothing will change until the rental sector situation gets so acute that 'something must be done' I would give it at least 5 years before the penny drops. By then, many of the current BTL investors will either incorporate or quit the business and sell up. The fortunate few who are without mortgages will soldier on no doubt, another case of the elite getting richer and the 'just managing' getting stuffed, as usual.


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