George Osborne has done more for the rental market than any other chancellor in history claims Marc von Grundherr, lettings director of Benham & Reeves Residential Lettings.
“Thanks to the changes in stamp duty rates, he has made renting long term a more attractive option for many tenants. Couple that with the fact that many overseas tenants can write their rent off against tax but must pay capital gains on any property they own and renting becomes a no brainer” says von Grundherr.
“We are advising landlords who are already in the market are advised to hang onto the properties, and not be tempted to sell ahead of changes to wear and tear allowance and mortgage relief” he says.
“Many nervous investors will leave the market and when they do, supply will be limited even further. The rent increases that will inevitably result will more than mitigate landlords’ extra costs” the agent anticipates.
Meanwhile BRRL has collated rental values for 2015, showing record highs across almost every London borough.
Those in zones 1 and 2 saw rental values increase by more than four per cent year on year; only Richmond-upon-Thames and a small area around Edgware Road in central London saw rents fall.
Hackney was the clear winner with a 33 per cent increase in rental values over the past year although Bow, Bethnal Green and Haringey all experienced double digit growth as well, says the agency.