The Royal Institute of Chartered Surveyors is backing the RLA in calling for the Government to rethink its tax plans as the UK faces a critical shortage of rental homes.
Research by RICS released today also backs up the RLA claims that tax raids by former chancellor George Osborne are forcing landlords out of the market, creating a critical shortage of rental homes.
According to its findings 86% of landlords have no plans to increase their rental portfolios this year. A total 66% of RLA members said the same thing in the association’s most recent tax survey.
In addition to this 31% of RLA members who responded to the survey said they were considering leaving the market altogether and 58% were thinking of reducing investment.
RICS is now calling on the Government to get rid of the stamp duty levy on buy-to-let purchases altogether to alleviate the pressure on the rental market.
Jeremy Blackburn, RICS’s head of policy, said: “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.”
The body also backed the RLA assertion that PRS landlords had become nothing more than a cash cow for the treasury.
Mr Blackburn added: “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.”
Andrew Goodacre, chief executive of the RLA said: “The RLA warned at the time that excessive taxation of landlords would force some to sell up at a time when more and more rental homes are needed and the country is in the grip of a housing crisis.
“The RICS data backs up what we are hearing from our members and we hope to work with them to address this crisis and lobby Government to re-think the way PRS landlords are taxed.”
The RLA is now seeking a meeting with RICS to discuss the findings.