Efforts to reform and boost the supply of private rental homes in today’s highly anticipated Housing White Paper will achieve very little if the Government does not back small-scale landlords, insists the Residential Landlords Association (RLA).
The Housing White Paper is expected to focus on encouraging greater institutional investment in the private rental sector, despite the London School of Economics warning: “Even if institutional investors enthusiastically enter the market, individual landlords will remain dominant – as they are across Europe.”
This statement was also supported by a House of Lords committee report, which acknowledged that previous attempts to encourage such investment had “achieved little”.
Instead, the RLA, which represents small-scale landlords, is calling on the Government to ensure that incentives are provided to the whole private rental sector.
This includes encouraging small-scale landlords and supporting them in expanding their portfolios to provide the extra homes so urgently required.
Ministers are reportedly looking to encourage longer tenancies in the private rental sector as part of the White Paper, yet official Government data shows that the average length of time a tenant has been in their private rental home is now four years.
As its research shows that 25% of small-scale landlords are prevented from offering tenancies longer than one year by their mortgage lender or insurer, the RLA is urging the Government to take action to encourage lenders and insurers to allow landlords to offer longer tenancies.
Please note that when insuring your property with Just Landlords, you will not be restricted on the length of tenancy you can offer. Find out more about our award-winning cover here: https://www.justlandlords.co.uk/landlord-insurance
The Chairman of the RLA, Alan Ward, says: “Whilst we welcome efforts to boost the supply of homes to rent, this will not be achieved through a single-minded focus on corporate investment. The very fact that a renewed push is being made for such investment is a sign that previous efforts have failed.
“Any plan for the rental sector that does not provide equal support and encouragement for the vast majority of individuals making up the country’s landlord population is doomed to failure.”
He insists: “Instead, the 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 smaller landlords to get more properties on the rental market.”
We will keep all investors, including small-scale landlords, up to date with announcements regarding the Housing White Paper at our partner site, LandlordNews.co.uk.