Last Updated: 12/10/2016
Tags: The UK Needs Private Landlords
Since April this year the Government has introduced various measures in order to dissuade investors from purchasing buy to lets, including a levy on stamp duty. Since then if you buy an investment property or second home you can now expect to pay an extra 3 percentage points in stamp duty.
Their intention was to free up more properties for first time buyers and although there are more available properties on the market – some of this is attributed to the vote to leave the EU, it still leaves a massive deficit in the amount of rental property available. Private landlords play a very important role in the UK providing accommodation for people who just cannot buy their own home. Nearly 4 million people currently rent in the UK and this figure is expected to expand to 6 million within the next few years.
In direct consequence to the changing laws, including a reduction in tax allowance on mortgage interest and a change to the wear and tear allowance many property investors sold their properties before the 1 April deadline. Earlier this year the housing charity Shelter called for the Government to create another 12,000 new properties a year in order to tackle lack of housing in the UK.
In a new report from Your Move this week it showed that nearly half of the renters in the UK are 50 or over, with 46% of them happy to continue renting.
It seems that unless the Government changes its policy or introduces stack of new social housing we could be heading for a major property rental shortage in the very near future.
If you would like to talk through any property related issues why not pop into Hawes and Co for a chat and a coffee or call our team on 0208 946 1000.