Government ‘risks rental crisis’ with landlord attacks

Government ‘risks rental crisis’ with landlord attacks

0:02 AM, 5th September 2024, About 2 months ago 4

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The government could trigger a rental crisis if it continues its attacks on private landlords, one tax expert warns.

Landlords are being forced to sell up due to a ‘tsunami of legislation’ that has made it increasingly difficult and costly to operate in the sector.

Heather Powell, the head of property at Blick Rothenberg, said: “The statistics show that 2.81m individuals reported income from rental properties in 2022 to 2023 to HMRC, accounting for £44.7billion of rents.

“The number of private landlords declaring rental income has also increased slightly from 2018 to 2023.”

Big drop in homes to rent

She continued: “However, the government needs to ensure that landlords do not decide to sell up or there will be a major decrease of homes available for rent.

“Unincorporated landlords have faced a tsunami of legislation in the last 10 years.

“This has included a restriction in the proportion of their mortgage interest that can be deducted when calculating their tax liability.”

Energy Performance Certification (EPC) regime

The latest legislation faced by landlords is to meet the Energy Performance Certification (EPC) regime.

The government wants rented homes to have an EPC of C by 2030 – but many landlords will struggle to meet that deadline.

She says that private landlords are considering their options, especially with forecasts of low future growth in house prices.

Also, landlords who are remortgaging at higher rates and facing EPC upgrading costs will struggle to charge enough rent to meet their higher costs.

That scenario could see ‘many’ landlords deciding to sell – especially if, as is being predicted, higher capital gains rates will be imposed from April 2025.

Unlikely to be in a position to buy

Ms Powell added: “Tenants are unlikely to be in a position to buy and the delivery of new homes for rent has slowed due to the financial constraints faced by the registered social housing providers.

“Many graduates and key workers rent, and this could leave them without any housing options, which will not help the economy.

“Changes to taxes and other legislation need to be carefully considered to ensure that homes are available where they are needed, which means private landlords need to be encouraged to remain in the sector.”


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Paul Essex

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8:51 AM, 5th September 2024, About 2 months ago

We eagerly await their report into the denomination of the Pope.

Badgers tusk

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9:51 AM, 5th September 2024, About 2 months ago

Why can’t rational, logical thinking people like this lady Heather Powell work in government? It’s just simple case of treating people fairly to get the best outcome for all concerned. Simples. Too simple for gov. Who on earth voted for these clowns is obviously part of the circus too.

Graham Turrell, Landlord & Entrepreneur

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11:01 AM, 5th September 2024, About 2 months ago

Reply to the comment left by Paul Essex at 05/09/2024 - 08:51
... along with their report on the toiletry habits of large furry predators in their natural habitat.

Are we all certain this isn't a repost from 2015?!

PAUL BARTLETT

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22:50 PM, 5th September 2024, About 2 months ago

The Office of Budget Responsibility are the Treasury quango setup to mark the homework of Chancellors and ensure that economic modeling not wishful thinking are used to come to Budget measures.
Who in the OBR actually focuses on the property market and its place in social affairs?
It's clear that Gormless Osborne and Mindless Gove didn't listen to the consequences of their market interference. So they caused the Housing Crisis.
Can the next lot be more realistic or will they just make it worse...

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