The new Chancellor Philip Hammond should “change the Government’s attitude to the Private Rented Sector (PRS) to prevent the UK housing crisis spiralling out of control”, that’s the call from Alan Ward, Chairman of the Residential Landlords Association, following the Government minister’s reshuffle.
According to the RLA, George Osborne has been imposing “punitive tax rises” since 2015 on the PRS, claiming that private landlords are preventing first time buyers getting onto the property ladder.
A report from The London School of Economics appears to back the RLA’s assertion that this is not the case, arguing that only a minority of sales to landlords involve bids from both types of buyer.
George Osborne’s clampdown came despite independent predictions that one million new homes to rent will be needed over the next five years and the Treasury Select Committee warning that: “addressing the “home ownership crisis” must not come at the expense of a shortage of homes to rent.”
The RLA is therefore calling on the new Chancellor, Philip Hammond MP, to reassess previous thinking and change course, recognising that forcing some landlords to sell up and stifling investment by others will only make it more difficult for so called “generation rent”. Many thousands of people need to find suitable housing and the RLA’s argument is that current policy will simply push up rents for those in rented accommodation.
Alan Ward, Chairman of the RLA says:
“Access to decent, affordable homes to rent is vital to supporting a flexible labour market, and ensuring that young people and families have a place to live.
“Whatever the new Government does to support home ownership, demand will continue to increase for homes to rent.
“The new Chancellor has an important opportunity to reverse recent punitive tax changes and support the majority of landlords who are providing good housing to their tenants to invest in the new homes we need.”
— LandlordZONE (@LandlordZONE) July 26, 2016