At least 1.8 million more households will be looking to rent rather than buy a home by 2025, the Royal Institution of Chartered Surveyors claims.
The surveyors’ body is calling on the government to reverse the 3% stamp duty surcharge that was imposed on second homes in April in a bid to encourage landlords to increase their property portfolios.
After a surge in buy-to-let and investment sales in the first part of the year, the RICS says that a net balance of 58% of estate agents have seen numbers fall since new stamp duty rates were introduced.
A survey of landlords by the RICS also found that 86% had no plans to add to their portfolios this year.
The professional body is urging the government to…
-Drop its previous focus on home ownership and take steps to encourage the provision of more rental homes.
-Reverse the new stamp duty rates to encourage private landlords to expand their portfolio of rental homes.
-Encourage the building of large-scale rental portfolios by offering pension funds and other institutional investors tax breaks.
-Give local authorities holding brownfield sites encouragement to release land for build-to-rent developments.
Jeremy Blackburn, head of policy at the RICS, says: “The private rented sector became a scapegoat under the previous prime minister, and because of that it suffered”.
“Yet with increasingly unaffordable house prices, the majority of British households will be relying on the rental sector in the future.
“We must ensure that it is fit for purpose, and the government must put in place the measures that will allow the rental sector to thrive. Any restrictions on supply will push up rents, marginalising those members of society who are already struggling”.
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