CRUSADER: Was the Budget the death knell for the PRS?

In a Budget that surprised no one for being the biggest tax grab in decades, Labour really has shown what they think of landlords in the PRS. Absolutely nothing. They know nothing about us, the sector or why we need people to keep investing.

It’s all about the tenants, isn’t it?

Except it won’t be and when there are fewer properties for let being bought, and landlords leave, where will tenants live?

I know critics say that’s no bad thing because the property is still standing, and someone is living in it.

But that someone won’t be renting, will they?

So, Labour has delivered a Budget aimed at reducing the PRS and moving tenants into home ownership – something George Osbourne started all those years ago.

Death knell for the sector

The scenario that will play out is bad for landlords AND tenants and could be the death knell for the sector.

The announcement of a 5% stamp duty land tax surcharge for landlords is a move that will undoubtedly have far-reaching consequences.

This seemingly punitive measure, designed to curb investment in rental properties, is a short-sighted decision.

Again, we are back in the world of unintended consequences – and this barmy idea will be costly.

By discouraging investment in rental properties, the government is inadvertently worsening a housing shortage that will drive up rents.

I know that, you know that but the government, councils and tenant activist organisations don’t.

The calamitous Renters’ Rights Bill

Don’t forget we are already facing the calamitous Renters’ Rights Bill which is encouraging landlords to sell up.

I fail to understand what activists can’t see is happening – that is fewer properties to rent means more competition, which means higher rents.

I can’t even imagine what the impact will be like in areas with high demand, such as London, where rents are already at a premium.

The Renters’ Rights Act, coupled with the 5% surcharge, creates a perfect storm for landlords.

The increased protection for tenants in the Bill – to the detriment of landlords if we can’t get our property back – will create an imbalance.

I can’t see Build to Rent or councils coming up with the homes that they will inevitably need in the short term.

Forget the fantasy of building 1.5 million homes when we don’t have the money, the manpower or the materials.

Larger landlords will cope

Not only will small landlords not invest because the numbers won’t add up, but larger landlords will cope – and pass on the extra costs.

Every week I say the same thing – it’s always tenants that pay.

But with the prospect of rent caps, eviction delays and a court system stacked against landlords wanting possession, what should we do?

The country is already in a housing crisis and with a big chunk of the population unable to buy their home, what can be done?

Renters face higher rents, which means they’ll struggle to get a deposit together, and even well-paid tenants are going to find themselves being outbid on a home.

So, where are those first-time buyers coming from?

Encourages investment in the PRS

We need Labour to reconsider its damaging approach. Instead of penalising landlords, the government should focus on creating a supportive environment that encourages investment in the PRS.

This could include measures such as simplifying tax rules, streamlining regulations and providing incentives for landlords to improve energy efficiency.

By working with landlords, rather than against us, the government can ensure a sustainable and affordable private rented sector.

The alternative is a future where tenants pay an ever-greater proportion of their wages to live somewhere, with little hope of ever owning a home.

But let’s be honest too – landlords are caught between a rock and a very hard place.

Do we carry on and hope this absolute shower of chancers, fantasists and commies get voted out at the earliest opportunity? Or do we join the masses leaving?

It’s a tough call and the PRS is going to get tougher for landlords and tenants before it gets better.

What a world we live in when Labour politicians can’t tell us what a woman or what a worker is – and now they don’t know what landlords do either.

We really do get the political leaders we deserve.

Until next time,

The Landlord Crusader

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