In a property focused podcast, the Chancellor Rishi Sunak has been encouraged to help boost the supply of the housing stock in the private rented sector which is heavily needed. The hope is to support investment in the PRS.
More specifically, Dominic Agace, is calling for the Chancellor to make it more appealing for landlords to invest in the PRS to increase the number of rental homes.
The latest episode in a property podcast, The Property Exchange, has a focus of the rental markets in London and the rest of the country. Dominic said that many landlords have sold off investment properties in central London following tax changes on mortgage relief available to landlord and the introduction of a 3% surcharge on second property purchases – which has led to a reduction in available rental properties.
Agace commented: “30% of homes in London are in the private rented sector. Young professionals coming to work in London to build a career need to be based in the capital and it is critical that housing stock is here and affordable. It is important that they are able to come to ensure our continuing status as a global centre. There has to be a balance of fairness between tenant and landlord.”
He continued: “Prices in central London have come down so it is a good time to invest and make the most of the capital growth and increasing rents as people return to the capital. However, landlords need some fresh encouragement from the Chancellor to invest in London.
Dominic went on to warn that further tax penalties on landlords could result in a reduced number of rental properties and higher rents. Further tax penalties have been called for by Sir Keir Starmer in a speech to the Local Government Association Conference.
Agace spoke further: “This could push landlords to sell off more properties, reducing supply and leading to rent increases – which would be more costly to working people needing to rent than the 1.25% rise in National Insurance.”
The Property Exchange podcast, presented by Anne Ashworth, also looks at opportunities for investors.
The podcast is available on Apple, Spotify and Audioboom.