Demands Halt to Government Intervention in the Buy-to-Let Market
Demands Halt to Government Intervention in the Buy-to-Let Market:
The Intermediary Lenders Association (IMLA) is a foremost body of mortgage lenders.
This association questions the government’s intervention.
It demands that the government should stop intervening in the buy-to-let market.
Recently, the government has been using legislations to intervene in the market.
The IMLA released a new report recently.
In the report, the association warns the government.
It notes the negative effects of tax and regulatory changes.
The changes are already affecting the private sector.
Factually, these changes may make a few landlords leave the sector.
Generally, the organization worries about the several interventions of the government.
And it notes that the interventions made small-scale investors lost interest.
Moreover, the interventions affected their ability to buy properties.
Therefore, it states that further changes would be catastrophic.
The changes would affect the vital choices of renters and increase rents.
Findings of the English Private Landlord Survey 2018
Furthermore, the IMLA references the English Private Landlord Survey 2018.
The Ministry of Housing, Communities and Local Government published this survey.
The survey says there are now more professional landlords than small-scale landlords.
This is the first time that the private rented sector (PRS) will be experiencing this.
This government survey shows that 48% of the PRS is now professional landlords.
In 2010, it was 38%. However, single-property landlords are currently 21% of the market.
It was 40% nine years ago.
Legislative changes were the major culprit.
They led to a reduction in the number of single-property landlords.
About 61% of small-scale landlords wanted to sell their properties.
This is mainly because of legislative changes.
Comments of the executive director of IMLA
Kate Davies, the executive director of IMLA, spoke on the matter.
She noted that lots of pressures are on the PRS in the UK.
The social housing sector in the UK can no longer provide enough homes.
This is especially true for many lower-income households.
Consequently, landlords need to help. Thankfully, they are already letting these households properties.
Meanwhile, some individuals only want to enjoy the flexibility of renting.
Also, there are others who cannot afford to buy houses.
This is due to exorbitant prices and difficult mortgage rule.
Nevertheless, these different people must get what they need.
However, there are concerns about how government intervention affected landlords.
Recently, the intervention affected small-scale landlords.
A lot of them are incapable of buying properties.
Increased tax and regulatory laws continue to discourage landlords.
It is likely that many will leave the PRS.
There is an increase in the stake of professional and institutional property investors.
Generally, this increase is great news.
However, there is a fall in one-property buy-to-let investors.
And this is not commendable.
Notably, the number of single property landlords is down by almost 50%.
Primarily, the challenges facing the PRS do not only affect the landlords.
Millions of tenants in the UK will feel the effects too.
These effects include an increase in rent and a lack of supply.
Additionally, the quality of rental properties in the UK may also fall.
Therefore, the IMLA implores the government to stop the regulations.
Also the government should stop the taxes affecting the landlords.
The government should rather use a more moderate approach.
This will make sure that PRS continues to be strong.
Hence, millions of tenants will be able to depend on the sector.
Reneza offers several real estate solutions.
These solutions are targeted at all real estate professionals and investors.
Our seasoned professionals work with various stakeholders.
Therefore, we are the number 1 team you can always count on.
Contact us now and let us help you.