Almost all landlords are considering increasing rents to pay for the higher taxes they now face, it has been claimed.
According to a survey by the Residential Landlords Association, 84% are likely to consider increasing rents following the Chancellor’s recent tax assault on the buy-to-let sector.
The survey also found that 78% of landlords felt that the changes would deter them from investing in more properties to rent with half considering getting rid of properties.
The RLA says this is in the face of rising demand for rented housing with Savills predicting that 1m new homes to rent will be needed by 2021.
The RLA said that whilst fewer buy-to-lets being bought might meet the Chancellor’s desire to free up some properties for home owners, for the increasing number of people who cannot afford to buy or who prefer not to, the tax changes will make it more difficult and more expensive for them to access housing.
The RLA claimed that in forcing rents up the Government is hitting those it is keen to support into home ownership through making it more difficult for them to save for the deposit they need.
The RLA is calling on the Government to exempt from the 3 percentage point Stamp Duty levy all rental property
RLA chairman Alan Ward said: “The Chancellor’s tax policies are impacting on tenants’ lives – not only are more than four in five facing rent increases but half of landlords may be selling rented property, which might result in tenants being given notice to leave their properties.
“Ministers need to end the myth that landlords are to blame for the country’s housing crisis, and base policy on fact, not political expediency.”