National letting agent trade body Propertymark has told the Chancellor that unless the private rented sector is overhauled a significant number of landlords will quit the sector.
The organisation says within its submission to the Sunak’s Autumn Budget and Spending Review that the rental market is already facing a ‘cliff edge’ as the private rented sector struggles to keep up with demand, but that rent arrears and a crumbling court system are making the situation worse.
Such an exodus of landlords would be catastrophic for the housing system, including the many people who rely on the private rented sector to meet their housing needs.
Research completed recently by broker The Mortgage Works found that 20% of landlords are likely to sell property in the next 12 months.
This is in addition to a recent Podcast by Winkworth chief executive Dominic Agace, where he called for the chancellor Rishi Sunak to “stop hammering buy-to-let landlords”, but rather do more to support property investors in the autumn budget on 27 October.
The company points out that research shows that 20% of landlords are seriously considering selling up owed in part to tax and regulatory changes.
He further said: “That could be one million homes lost. Five million homes rely on the private sector, which has an important role to play in levelling up so people have options and there is mobility in the jobs market.
“I do think it is vital that first-time buyers and landlords have a level playing field in the property market but landlords shouldn’t be seen as the enemy.”
His views were backed by Anthony Emmerson, director of mortgage specialists Trinity Financial, who also takes part in the latest podcast episode.
He said: “Buy-to-let landlords have had a very tricky five years. First, tax relief was removed, followed by more regulations and tightening of the rental stress tests which means landlords have to put in a much higher deposit when buying property.
“There is a significant financial penalty on a portfolio landlord, someone who owns four or more properties.
“If we lose 20% of rental properties, the government isn’t building enough social housing. Rents will go up and there will be a lack of supply.”