Buy to let landlords “should be encouraged” by government.
Government plans to mend the country’s “broken housing market,” which include building more homes to rent, are admirable and overdue. However supporting and not punishing the private residential landlord could be a part of the solution.
That’s the view of Jonathan Daines (pictured), chief executive of leading Warwickshire-based online letting agency, lettingaproperty.com
One aspect of a Government White Paper, being unveiled later today, is expected to focus on people who are renting their homes, with proposals to include minimum tenancy lengths in a move to provide more security for renters – and a drive to construct more homes specifically for rent.
Mr Daines said : “The Government is acknowledging the fact that new thinking is needed if the country is to mend what Ministers are now saying is a broken housing market. The White Paper is a welcome move – but there’s a long way to go and the Government is already behind schedule on its intention to build one million new homes by 2020.
“Building more affordable housing will take time and given government has fallen short of targets, this White Paper needs to consider the support role buy-to-let landlords are playing to prop up this shortfall.
“Government should look again at the tax rises imposed by the previous Chancellor on landlords which will only act as a disincentive for the hundreds of thousands of landlords doing what the government have failed to do for years – provide housing.”
He added: “Ministers who want to encourage longer tenancies in the rental market will need to address restrictions imposed by their mortgage lender or insurer from offering tenancies longer than a year, but a welcome move non-the-less. Protecting renters who settle in communities and schools by not having to move from one place to another is the correct social attitude government should take.”