Government warned about taxing landlords out of business
The government is in danger of taxing landlords out of the market and should allow more time for new policies to bed in before introducing further change, according to the National Landlords Association (NLA).
The association argues that excessive change could lead to the loss of good landlords, making life difficult and driving up costs for people looking for decent, affordable home to rent.
According to NLA research most UK landlords (79%) are only paying interest on their mortgages, rather than seeking to pay off the loan. This is attributed to the rising costs of running a lettings business, of which tenants and the wider public are frequently unaware.
Richard Lambert, NLA Chief Executive said: “There are myriad costs to running a letting business, including maintenance, repairs and upgrades, licensing, and insurance. Rents have to cover all these costs, as well as the interest on a mortgage, where there is one.
“Housing is expensive for everyone at present. The government needs to encourage the supply of housing in all tenures, including the private rented sector.”
The NLA wants the government to allow five years before new policies and regulations are introduced to the private rented sector, so existing polices can become established and their effectiveness monitored.
It also called on the government to encourage house building in all tenures by making changes to the planning and borrowing rules.
Read more about this story on news website Property Wire.
Meanwhile, Property Wire also reports on figures showing a resilient UK private rented market, with sustained demand for property to let making the outlook for investors a positive one. Rents in the UK increased by 1.5% in the 12 months to December 2018, with the highest year on year rise in London, at 4.7%.
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