Call to save the PRS by scrapping landlord levies

The private rented sector (PRS) is in dire straits, with rocketing tenant demand and a fall in the number of homes to rent, Ben Beadle says.

In an article for The Times, the chief executive of the National Residential Landlords Association (NRLA), argued that tax increases over the past 14 years have made it more difficult for tenants to access the homes they need.

The rise in demand and fall in supply is also leading to significant rent rises.

Mr Beadle points to a Capital Economics study suggesting that that eliminating the 3% stamp duty surcharge on second homes could unleash a wave of new rental properties, with nearly 900,000 additional homes entering the market nationwide.

This would not only alleviate the housing shortage but also inject £10 billion into the Treasury’s coffers through increased income and corporation tax revenues.

Potential capital gains tax increases

On Twitter, Mr Beadle wrote: “My article in The Times online highlights the pressing issue of potential capital gains tax increases and their impact on #tenants.

“Tax hikes over the past 14 years have hindered access to homes, and taxing our way out won’t solve the problem.

“We need a thriving #privaterentedsector and investment in all housing types to address the imbalance between supply and demand, which drives up rents and limits renters’ purchasing power.”

He added: “The lowest number of first-time buyers for a decade recorded in 2023 (290k) underscores the urgency for change.”

‘Boost investor confidence’

Mr Beadle continued: “Rather than stifling investment, let’s foster an environment that boosts investor confidence.

“Instead of banning bidding wars, focus on increasing supply to prevent them.

“And, let’s support responsible #landlords and empower #renters to hold bad housing providers accountable.

“Bold and pragmatic changes in taxation and housing supply are crucial to avoid harming those least able to bear the burden.”

George Osborne’s attempt to ‘level the playing field’

In his article, Mr Beadle spelled out Chancellor George Osborne’s attempt to ‘level the playing field’ between homeowners and renters as backfiring.

His policy, which favoured homeowners by imposing higher taxes on rental properties, has only exacerbated the housing crisis.

Mr Beadle says this was a classic case of unintended consequences which made it more expensive for landlords to operate.

Mr Osborne also inadvertently discouraged investment in the PRS which also, in turn, led to a decline in the supply of rental properties.

Tenants then saw rents rise and they struggled to find affordable housing.

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