The Residential Landlord Association (RLA) has called for abandoned or unused plots of public sector land to be redeveloped as new sites for private rental sector homes.
The current estimation is that by as early as 2021 as many as 25% of all homes will be in the private rented sector, the Residential Landlord Association is calling on the government to do something about the housing crisis and make available plots of public sector land open for business and redevelopment to the private sector.
The government has given its blessing to the private rented sector and openly supports more institutional investment into the sector, although they have not made themselves overly popular with the average buy to let landlord in the wake of the recent tax and stamp duty changes.
If the government does not do more to support UK property developers there is no way the demand for rental properties will be met by 2021, without the release of public sector land.
Residential Landlord Association has given the government a report outlining their proposals ahead of the November 2017 budget, the association has also called on the government to scrap the controversial cuts to mortgage tax relief planned, that are due to affect private sector landlords.
They have also put forward the idea of tax incentives to landlords who are prepared to offer longer term tenancies, and those who are willing to sell properties to long term sitting tenants, in this scenario the RLA have asked that the government should apply the 20 per cent rate of Capital instead of the current 28 per cent.
RLA chairman Alan Ward said: ‘RLA research shows many landlords have stopped investing in more properties as a result of recent tax changes, instead moving into short term holiday lets or ceasing to rent to groups deemed ‘high risk’ such as the young and those on benefits.
‘These decisions have far-reaching consequences for a country in the grip of a housing crisis and we will do everything in our power to convince the government that this unfair tax must be reversed.’