The Royal Institution of Chartered Surveyors (RICS) has warned that changes to Stamp Duty Land Tax (SDLT) and mortgage interest tax relief will weigh heavily on supply and demand.
It has warned that the success of the build-to-rent sector will be ‘crucial’ over the next three years in addressing the ‘undersupply’ of rented properties available in the UK, as an increasing number of investors ‘scale-back’ their property portfolios.
It revealed that that 28 per cent of landlords are intending to “scale-back” their portfolios this year alone, with 26 per cent more planning on doing the same within the next three years. The majority of those quizzed cited recent SDLT reforms and forthcoming changes to mortgage interest tax relief as their reasons for cutting back.
However, with tenant demand rising year-on-year, the RICS has warned that the build-to-rent sector will need to bridge the gap between supply and demand.
Jeremy Blackburn, Head of Policy at the RICS, said: “Our survey demonstrates how vital greater supply is in this sector; we really need to turbo boost ‘build-to-rent’.
“The Government’s move away in the housing white paper from home ownership to rent must be credited. They’ve listened to us on expanding supply not just pumping demand, and on giving [the] institutionalised private rental sector much greater priority alongside owner occupation.”
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