At the current rate of expansion the Build to Rent sector cannot ever meet the ever increasing demand, this is according to a trade body who has called on the government to stop hindering the sector and do more to help buy to let investors.
The Residential Landlords Association – is not the first and maybe not the last trade group to make public its submission to the Treasury ahead of the Budget on November 22 – says if the government intends to increase supply in the private rental sector it would concede the fact that individual investors and smaller property companies letting out “a few properties” deserve support.
“The government has encouraged greater institutional investment in the private rented sector but evidence shows that this will never be enough to meet the rising demand” claims the RLA.
The association implies in its submission that the biggest factor in helping individual BTL investors would be to get rid of the cuts to mortgage interest relief.
They have further proposed that something should be done to reign in the mortgage lenders who stop landlords from giving the more ‘family-friendly’ longer term tenancies, and the introduction of a scheme allowing tenants with good payment histories to have them recognized by credit reference agencies.
“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” claims RLA chair Alan Ward.
“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.”
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