Figures released last week by the sales and rental portal Zoopla indicate that private rents rose by 2.6 per cent in the fourth quarter of 2019 in response to an eight per cent increase in tenant demand and a corresponding drop in the number of available properties of four per cent.
In 2015 Chancellor George Osborne introduced a number of changes to the taxation of homes in the private rented sector, which have led landlords throughout the UK to dispose of properties and look for other ways to invest for their futures.
As the NLA predicted at the time this short-sighted approach to taxing landlords’ businesses is beginning to impact severely on the nation’s ability to house those in need.
Richard Lambert, NLA Chief Executive, said: “According to the NLA Quarterly Survey (Q3 2019) landlord confidence has slumped to an all-time low, with many landlords being forced to exit the market altogether.
“Five years ago, we warned the Government that its reckless plan to scrap legitimate tax relief on landlords’ finance costs would backfire, disrupting the supply of private rented homes. Now, in 2020, households across the UK are reaping the whirlwind sown by David Cameron as investors turn their attentions elsewhere.
“The new government has an opportunity to break with the past and work in concert with landlords to ensure housing demand is met with good quality rented accommodation. We urge Sajid Javid to use his first Budget Statement to tackle the inequity of the way his predecessors have taxed landlords.
“By focussing on Capital Gains Tax, extending rollover relief and reintroducing taper-relief, landlords could be encouraged to reinvest for the long-term rather than exit the market, thereby helping to avert an impending crisis.”
