PRS reform promises won’t happen without homes

A lack of housing choice for tenants threatens to undermine private rented sector (PRS) reforms being proposed by political parties, the National Residential Landlords Association (NRLA) says.

The NRLA is sounding the alarm as the Conservatives, Labour, Liberal Democrats and Green Party all consider ending section 21 ‘no-fault’ evictions.

However, it says that none of the parties will address the biggest issue facing tenants – the severe shortage of available homes for private rent.

Recent research reveals that, on average, 15 renters compete for each available property, driving up rents across the market.

Renters are being let down

The NRLA’s chief executive, Ben Beadle, said: “Renters are being let down by a repeated failure to address the rental housing supply crisis.

“The lack of choice serves only to drive up rents and, given the shortage of alternative accommodation for them to move to, makes it harder for renters to hold rogue and criminal landlords to account.”

He adds: “We will work with the next government to ensure the replacement for section 21 works for the sector as a whole.

“However, greater security for renters will mean nothing if they cannot find homes to rent in the first place.”

Scrap the stamp duty levy to help landlords

The NRLA says the next government should scrap the stamp duty levy to help landlords bring more than a quarter of a million long-term empty homes back into use.

The landlords’ organisation also points to a Royal Institution of Chartered Surveyors (RICS) report which highlights a ‘huge mismatch’ between supply and demand.

That situation has led to rising living costs and reduced affordability for renters – and without decisive government action, the situation will worsen, the NRLA warns.

Also, real estate firm Savills is predicting that England and Wales will require up to one million new homes for private rent by 2031.

Exacerbating the housing supply crisis

But uncertainty over sector regulation, coupled with escalating costs, is exacerbating the housing supply crisis.

Tax hikes since 2015, the Institute for Fiscal Studies says, have stifled market growth and contributed to higher rents.

Capital Economics proposes scrapping the 3% stamp duty levy on additional home purchases.

That could, potentially, make 900,000 long-term rental homes available over the next decade.

This move would also boost Treasury revenue by £10 billion through increased income and corporation tax receipts.

The NRLA insists on regulatory certainty for the rental market with a system that helps landlords gain possession quickly in legitimate circumstances.

Share This Article