RICS Surveyors concerned about Landlords leaving the PRS

by Property 118

16:30 PM, 15th September 2017
About A year ago

RICS Surveyors concerned about Landlords leaving the PRS

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RICS Surveyors concerned about Landlords leaving the PRS

The Royal Institution of Chartered Surveyors (RICS) conducted a survey of its members which highlighted their concern over landlords leaving the PRS when demand for rental property is already outstripping supply.

Member Surveyors surveyed thought on average over the next five years rental price inflation would be 3% where as they thought house price inflation would only average 2%.

61% of Surveyors thought more landlords would exit the market than enter the market over the next year and only 12% predicted the reverse.

Over the next 3 years 52% predicted there would be a net loss of landlords to the PRS and only 17% thought there would be a greater number (some may still not fully understand the consequences of Section 24).

Paul Bagust, of RICS, expressed concern over this prediction of landlords exiting especially when current house price inflation would normally mean the reverse.

Paul said: “A functioning private rented sector is crucial to a healthy housing market and it’s predicted that over 20% of all households will be PRS by 2020. The sector is extremely diverse, including many one home landlords.

“RICS is part of a sector wide collaboration developing a revised industry led PRS Code of Practice, to raise standards for both consumers and landlords, bring clarity to those already in the market on various policy measures, and encourage landlords back into a professionalised market.”

 

 



Comments

Whiteskifreak Surrey

19:19 PM, 15th September 2017
About A year ago

It may not be exactly the right place to post that link, but it is nevertheless related to the situation of the housing market.
Today's City a.m.: http://www.cityam.com/272133/lib-dems-kick-off-party-conference-season-weekend-heres
Interestingly, almost everyone wants to abolish or reform stamp duty, but there is not a single word about Section 24 and it's implication to the housing market as a whole.

Old Mrs Landlord

11:29 AM, 16th September 2017
About A year ago

Reply to the comment left by Whiteskifreak Surrey at 15/09/2017 - 19:19
London, as we all know, is the only place in the universe! Yes. this is an article in a London paper, but it is supposed to be about the Lib. Dems. conference discussion on housing UK wide. Broaden your horizons folks because.believe it or not, the world does not end at the M25..

Whiteskifreak Surrey

16:46 PM, 16th September 2017
About A year ago

Reply to the comment left by Old Mrs Landlord at 16/09/2017 - 11:29
Dear Old Mrs Ladlord,
Believe it or not, I am actually outside M25! What I wanted to bring to everyone's attention - perhaps in a little clumsy way - is the fact that when housing and homelessness are discussed very little or actually NO ATTENTION is paid to S24 and its disastrous consequences. Everyone in that article wants to abolish stamp duty, nobody does even mention it. And it is fundamentally wrong - regardless if it is inside or outside M25.

Old Mrs Landlord

9:40 AM, 17th September 2017
About A year ago

Reply to the comment left by Whiteskifreak Surrey at 16/09/2017 - 16:46
Sorry Whiteskifreak, That was directed at the journalist not you! Despite all the media coverage I think there is still little understanding in the wider public domain of the true nature of S.24, never mind the wider consequences. When I tell people about it they either glaze over, totally uninterested, or are uncomprehending and think I must have misunderstood the changes. Anyone who merely listened to George Osborne's budget speech introducing this measure would have no idea it was a complete overturning of the existing taxation regime applicable to only this one section of the public, viz landlords with mortages. This is why it can be presented in the press as a justified step towards ensuring landlords' "tax breaks" are reduced and as Osborne said "levelling the playing field".


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