Almost all landlords are considering increasing rents to pay for the higher taxes they now face.
In a survey the Residential Landlords Association found that 84% of private sector landlords are likely to consider increasing rents following the Chancellor’s recent tax assault on the buy-to-let sector.
It also found that 78% of landlords felt that the changes would deter them from investing in more properties to rent, with half considering getting rid of properties. This is in the face of rising demand for rented housing with the agents, Savills, predicting that one million new homes to rent will be needed by 2021.
In a statement the RLA said that whilst fewer buy-to-lets being bought might meet the Chancellor’s desire to free up some properties for home owners, for the increasing number of people who cannot afford to buy or who prefer not to, the tax changes will make it more difficult and more expensive for them to access housing.
In forcing rents up the Government is hitting those it is keen to support into homeownership by making it more difficult for them to save for the deposit they need.
The RLA is calling on the Government to exempt all rental property making a net increase in the supply of new housing from the 3 percentage point stamp duty levy.
A total of 39% of landlords reported that they would be more likely to invest in new build rental housing if this was exempt from the levy.
RLA Chairman, Alan Ward said:
“The Chancellor’s tax policies are impacting on tenants’ lives – not only are more than four in five facing rent increases but half of landlords may be selling rented property, which might result in tenants being given notice to leave their properties.
“Ministers need to end the myth that landlords are to blame for the country’s housing crisis and base policy on fact, not political expediency.”