Rental Reform: A Crisis in the Making?
The UK’s rental market is on the brink of a crisis, and it’s not just because of the proposed reforms to section 21 ’no explanation’ repossessions. The National Residential Landlords Association (NRLA) warns that the lack of choice for private renters will undermine any attempts to reform the rental market, regardless of which party is in power.
The UK’s rental market is in crisis
The NRLA points out that the chronic shortage of homes for private rent is the most pressing problem for tenants. With 15 renters chasing every available property, rents are rising across the market. The situation is set to worsen unless bold measures are taken by the next government.
Rent increases are a major concern for tenants
The NRLA is calling for certainty over the regulation of the rental market. When section 21 repossessions end, it needs to be replaced with a system that makes good on the shadow housing Minister’s belief that “Landlords need robust grounds for possessions in legitimate circumstances, and they need the system to operate quickly when they do.”
Regulation is key to a healthy rental market
Research by Capital Economics suggests that scrapping the 3% stamp duty levy on the purchase of additional homes would see almost 900,000 new long-term homes to rent made available over the next decade. This would lead to a £10bn boost to Treasury revenue due to increased income and corporation tax receipts.
Scrapping stamp duty could lead to a boost in rental supply
Meanwhile, Foxtons’ latest data reveals that the lettings market is becoming more balanced, with an increase in property listings and a decrease in competition. This is welcome news for renters, landlords, and agents alike.
The lettings market is becoming more balanced
However, the NRLA is warning that renters are being let down by a repeated failure to address the rental housing supply crisis. The lack of choice serves only to drive up rents and makes it harder for renters to hold rogue and criminal landlords to account.
Renters are being let down by a lack of choice
Spring Finance has also launched its development finance division, offering ground-up development finance for new build sites and light development finance for conversions, change of use, completion of yet-to-be-finished sites, and home extension projects.
Spring Finance launches development finance division
As the UK’s rental market continues to evolve, one thing is clear: the lack of choice for private renters is a major problem that needs to be addressed. The NRLA is calling for bold measures to increase the supply of homes for private rent, and it’s time for the government to take action.
The UK’s rental market needs bold action
