According to haart estate agents, it is now imperative that the Government begins to support those who are investing in the private rental sector or risk a mass exodus of landlords from the buy-to-let market, resulting in an inevitable decline in required rental property listings.
Without larger incentives for buy-to-let landlords, many will simply refuse to offer extended tenancies and exit the market, contributing to the increasing supply-demand imbalance in the PRS that is beginning to place upward pressure on rental values across many areas of the country.
The Government’s decision to limit mortgage interest relief to the basic rate of income tax and add a 3% levy on stamp duty for the purchase of additional homes is having an adverse impact on the PRS, and the estate agency fears that this will lead to a sharp rise in rents.
The latest data from UK Finance shows that gross mortgage lending rose by 7.6% to £24.6bn in July 2018 year-on-year ahead of this month’s base rate rise, and yet activity in the buy-to-let sector remained broadly flat.
CEO of haart estate agents, Paul Smith, commented: “Mortgage lending jumped a huge 8% on the year in July as existing homeowners sought to seal themselves into a lower rate ahead of the Bank of England’s interest rate hike.”
“The buy-to-let sector is a fundamental part of the UK property market, and with fewer landlords, we are seeing rents rise.
“The government must stop penalising those who are willing to invest in the rental market and stop its needless crackdown on the sector.”