As a result of the recent tax increases affecting the buy-to-let sector, the majority of private sector landlords (84%) are feeling pressured into raising rents to make up for their losses, according to a survey by the Residential Landlords Association (RLA).
A similarly high proportion of landlords (78%) are now less likely to invest in more properties to rent, and half of landlords are even considering getting rid of properties. This invariably means that some tenants will lose their homes as a result. With demand for rental property continuing to rise, it will become increasingly difficult for tenants to secure a place to live.
The changes will almost certainly achieve the Chancellor’s stated goal of freeing up properties for first-time buyers to get on the property ladder, but, at the same time, rental increases will make it harder for potential home buyers to save for the deposit they need.
The RLA has called on the government to waive the 3% stamp duty levy on all rental property making a net increase in the supply of new housing. The survey found that 39% of landlords would be more likely to invest in new build rental housing if the government accepted those terms.