String of data shows government policy failure

by Property 118

11:53 AM, 13th February 2020
About 2 months ago

String of data shows government policy failure

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String of data shows government policy failure

The RLA is claiming claiming that a string of data released today demonstrates the failure of government policy for the private rented sector.

The Royal Institution for Chartered Surveyors is warning that private sector rents are set to increase by 2% over the next year as a result of the demand for such housing exceeding supply as landlords dis-invest from the sector. This follows recent tax increases including restricting mortgage interest relief to the basic rate of income tax and a 3% stamp duty levy on the purchase of extra housing.

Alongside this it has been disclosed that just 18 individual landlords and property agents and five companies are registered on the database of rogue landlords for offences committed since April 2018. The Residential Landlords Association argues that this means either the number of problem landlords is not as high as many have argued or local authorities are focusing too much time on licensing good landlords instead of rooting out the criminals.

In a further blow to good landlords, statistics published today show that it now takes an average of almost half a year for courts to process claims for repossession of their property.  The RLA argues that during this time tenants may be refusing to pay any rent, indulging in anti-social behaviour or damaging the property.

John Stewart, Policy Manager for the Residential Landlords Association, said:

“This series of statistics clearly shows the negative impact of government policies. At the end of the day it is tenants who are suffering. The drop off in supply caused by good landlords who find operating in the market more difficult means it is increasingly difficult for tenants to secure somewhere to live and they are then faced with higher rents.

“Ministers need to change course and instead of attacking the private rented sector, there should be policies and taxation to encourage growth in the supply of rental accommodation to meet the ever increasing demand.”



Comments

Ian Narbeth

14:04 PM, 13th February 2020
About 2 months ago

With Esther McVey having been ousted after just 7 months in the job, I am not hopeful the new minister will have time to master their brief, let alone to listen to landlords, understand what is really going on and pull back some of the draconian measures that have been put in place to punish landlords. All for a few soundbites and to be seen to be going after rogue landlords.

Old Mrs Landlord

16:19 PM, 13th February 2020
About 2 months ago

Reply to the comment left by Ian Narbeth at 13/02/2020 - 14:04
Going after the votes of generation rent, more like. Media opprobrium for landlords and media approbation for the Tories - win/win as far as they're concerned.

Ian Narbeth

17:02 PM, 13th February 2020
About 2 months ago

Reply to the comment left by Old Mrs Landlord at 13/02/2020 - 16:19
That may be what they hope but as more decent landlords decide to pull out of the market and would be landlords who don't need the money decide not to risk becoming a landlord, rents will go up and more tenants will find they cannot find anywhere to live. We need to tell our MPs at every opportunity that they are making mistakes and will hurt the very people they want to help.

Coastal

15:45 PM, 14th February 2020
About 2 months ago

Apart from the time it takes to evict a tenant, I find as soon as an eviction notice is served, the tenant stops paying any rent at all! Over the 6 to 8 months, this just adds to massive eviction cost!
Until the government wakes up and stops subsidising and encouraging holiday lets with tax incentives, the housing shortage will just grow and grow... it's not rocket science! Families require long term housing, not holiday homes or bed and breakfast.

Gary Nock

18:39 PM, 15th February 2020
About 2 months ago

I think this sums up whats going on in Housing Policy today:

"In recent times, a popular quotation, actually written by Charlton Ogburn in 1957 on reorganization is often spuriously attributed to a Gaius Petronius. It reads:

We trained hard ... but it seemed that every time we were beginning to form up into teams we would be reorganized. I was to learn later in life that we tend to meet any new situation by reorganizing; and a wonderful method it can be for creating the illusion of progress while producing confusion, inefficiency, and demoralization"

Thats how landlords and agents feel.

Michael Barnes

3:28 AM, 16th February 2020
About 2 months ago

Reply to the comment left by Coastal at 14/02/2020 - 15:45
It is not putting holiday lets into the same position as residential landlords that is required, but reform of S24 and removal of CGT surcharge on disposal.

We mustn't fall into the trap of saying "you hit us, so you should hit them"


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