Landlords are urging the candidates to lead the Conservative Party to adopt a more positive approach to the private rented sector. In a letter sent to Jeremy Hunt and Boris Johnson the Residential Landlords Association warns that the interests of tenants are not being well served by policies which are reducing the supply of homes to rent.
According to Government data, 10% of landlords representing 18% of all tenancies in the sector plan to reduce the number of properties they rent out whilst 5% of landlords representing 5% of tenancies plan to leave the sector altogether. Recent RLA research suggests that 46% of landlords are planning to sell some or all of their properties.
This comes following a raft of Conservative policies aimed at dampening investment in the market, including imposing a tax on landlord investment in new homes to rent. This means that landlords investing in new rental housing are hit by a 3% stamp duty levy. Most recently the Government has proposed limiting the ability of landlords to repossess properties when they need to.
As a result of the fall-off in investment, the Royal Institution of Chartered Surveyors has warned that expectations for increasing rents are now at their highest point for three years.