Another government urged to reform tax rules for landlords to boost rental housing supply

With the number of properties available for rent limited, Propertymark is calling on the new government to reconsider how landlords are taxed to encourage new investment in the rental sector.

Demand for private rental accommodation continues to grow, but the latest Rightmove data shows an alarming fall in the number of properties available to rent as more tenants decide to extend their current tenancies rather than move, widening the supply-demand imbalance in the PRS segment.

Nathan Emerson, CEO of Propertymark, said: “Propertymark has long argued that the private rental sector needs more homes to stabilise rental prices, but there are a host of other factors that can help make the market more attractive to both investors and occupiers.”

Changes to landlord tax relief over the past few years have put many investors off the private rental sector due to the sharp decline in net rental income. However, the real losers have been private tenants.

With many landlords facing losses in profits, most who still invested in the private rental sector had no choice but to recoup their losses through high rents. Tenants paid the price for the government’s predatory taxation.

Emerson added: “With the general election approaching this week, Propertymark would like to see the next Government reform the tax system to encourage more investors to invest in the private rental sector and, in the longer term, reduce rents for tenants.

“While we support greater housing supply, there needs to be a sensible delivery programme that looks to protect the green belt wherever possible. It would also be sensible for them to avoid rent controls, which have had a devastating impact on the private rental sector in Scotland.”

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