Please Note: This Article is 3 years old. This increases the likelihood that some or all of it's content is now outdated.

Housing Minister Brandon Lewis denies claims that the Government is trying to “kill-off” buy-to-let (BTL) but on the contrary wants to “create a more professional private rental sector and eliminate rogue landlords.”

The Minister was responding to claims from ex-Conservative MP and Minister Michael Portillo. Speaking

Speaking at the Association of Residential Letting Agents (ARLA) conference Mr Lewis defended the government’s stance, insisting that it was never the government’s intention to damage the private rented sector (PRS) by killing off buy-to-let.

Landlords have recently been hit hard by a series of regulatory changes to the management of their rental properties and their finances, notably a 3% Stamp Duty surcharge, a to the change in the Wear and Tear Allowance, and the gradual removal over 4 years of mortgage interest relief.

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Mr Lewis told letting agents at their conference that the Government is still backing the private rental sector through schemes such as Build to Rent, though it is obvious that this will be more of a benefit to institutional investors rather than the 2 million or so small-scale landlords making up over 90% of the PRS.

Mr Lewis stressed:

“Our primary focus is increasing supply and homeownership. Most people (86 per cent) want to own their own home, but we also want a private rented sector. We want more institutional money and more professionally managed property.

“Buy-to-let is still an area with capital security and revenue returns, so there is still an attractive revenue model.”

Mr Lewis thought that schemes such as Right to Rent would crack down on rogue landlords.

Answering questions from the audience, Mr Lewis indicated that there are plans to look into introducing electrical safety rules in England, similar to new rules in operation in Scotland. He also intimated that he was interested in looking at measures to make it easier to avoid court proceedings in tenant evictions.

Please Note: This Article is 3 years old. This increases the likelihood that some or all of it's content is now outdated.

3 COMMENTS

  1. So, the government is NOT trying to crush the small private landlord and all they\’re trying to do is \’create a more professional private rented sector\’. Really?

    Well, he is obviously another pretty PR boy in the same mould as his lying leader. Of course they are trying to kill off the small private buy-to-let landlord and when they refer to \’a more professional private rented sector\’, that\’s simply PR speak for letting major City institutions take over the business, because the City have been wanting a piece of the lucrative buy-to-let action for years.

  2. If you step back and remember that the success of the Tory party of recent times is based on bringing home ownership to an increasing % of the population, it\’s pretty easy to see that a burgeoning Buy To Let sector runs contrary to their interests and therefore BTL must be curtailed. Institutional \”Build to Let\” is far more in-keeping with the Tory ethos.

  3. Maybe they\’re hoping that by squeezing out small private btl landlords, who don\’t add any real value, prices will adjust downward to a level where rental return is attractive enough for institutions to come in and actually – wonder of wonders – Add some value by building some fresh property supply. Heaven forbid

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