x
By using this website, you agree to our use of cookies to enhance your experience.
STAY CONNECTED!
    
newsletter-button

TODAY'S OTHER NEWS

Trade body hits out over 'high rents for Millennials' claim

A trade body has hit out at government policy following a think tank’s claims that young people are less mobile because of high rents.

Yesterday we reported that the Resolution Foundation claimed Millennials were finding it hard or impossible to move to higher-pay areas because of higher rents.

On top the that the Affordable Housing Commission has claimed greater numbers of households are now being hurt by high rents, too.

Now David Smith, policy director for the Residential Landlords Association, says the blame lies not with the private rental sector but with the government, which is choking off supply of homes to let.

“Instead of attacking the private rented sector we need pro-growth policies that recognise the need for more homes of a good standard and at an affordable rent. Making renting less attractive for landlords will not make a substantial difference to the availability of property. We must focus on building more homes to address this” he says.

The Royal Institution for Chartered Surveyors has warned that average annual rent rises are likely to be around three per cent for the next five years as a result of the demand for rental properties continuing to outstrip supply.

Government statistics show that 10 per cent of private landlords representing 18 per cent of tenancies are already planning to decrease the number of properties they rent out, whilst five per cent of landlords, representing five per cent of tenancies, plan to sell all of their properties. 

Recent stamp duty statistics also point to investment in the sector slowing up.

  • Mark Wilson

    There is a total inconsistency from and in the world of Landlords and this publisher.

    Landlords of flats subject to long leases have been identified by this publisher to be the demon yet Landlords of short tenancies are the good guys, misunderstood and government has just got it wrong. David Smith represents Property Mark, who in my opinion, wrongly got on the band wagon that all flat owners regret buying a flat and nothing could be worse than being a tenant. For starters, lots of flat owners have made lots of money and created real wealth form owning their flat (however bad it may be to have a Landlord)

    Who needs more protection owners or renters?

    Flat owners are campaigning for reform to make lease extensions cheaper and ground rents abolished, hopefully as a windfall. Short term tenants want the same treatment by way of security and rent controls. All involved want a share of the possible Landlord reform give away, courtesy of HM Government. The Resolution Foundation are just playing that tune.

    I expect renters will end up having a louder voice than owners.

  • icon

    Total agree, to many Freeholders and or their management companies operating at a great arms length and increase SC and Insurance year on year. Also take commission on Our Insurance policy.
    Yes flats can be an excellant investment, when we feel Freeholder and or management companies are ripping us off we set up RTM and they can then only collect the GR. We make high savings on SC and Insurance have better managed blocks and have a lifeboat fund building nicely.
    Nothing wrong with Flats if blocks maintained and SC and Insurance kept reasonable and not at Rip Off level.

  • Paul Barrett

    Tenants in the PRS should NEVER have tenure security!!!
    A LL should ALWAYS be able to recover his rental property when he CHOOSES.
    LL are in the game to make PROFIT!!
    As long as a tenant complies with their AST terms and pays annual rent increases then security of tenure will be maintained for as long as the LL wishes to offer a property for letting.
    A rental property is an invitation to treat not a lifelong contract.
    That invitation should be able to be cancelled by either party with relevant notice.

  • Mark Wilson

    Paul, I suspect the days of your letting world are numbered.

    S l
    • S l
    • 07 June 2019 19:42 PM

    i think majority of LL letting days are numbered and so are the renters unless the government come up with a more pro business solution to the prs

     
    Paul Barrett

    Yep so far I have been able to manage my business appropriately and reasonably successfully but much like many other LL the ability to manage our business is being and will be progressively removed from us.
    So back to pre HA days.
    Lots of good LL like me will be forced to give up.
    We simply cannot have third parties controlling our property businesses.
    Tenants will miss us once we are gone but that won't be our problem.
    I can and will achieve better outcomes with my capital than letting property on an AST.
    That game is really over.
    I will hopefully be an ex-AST LL in about 3 years time just before Corbyn is the new PM!!

     
  • icon

    Come on folks, we provide a valid service. LA days are numbered not the good professional LL.
    Start having more faith in your qualities and be more positive.

    Paul Barrett

    Faith is simply not enough.
    LL need and require CONTROL!
    Without it being a LL is pointless.
    We end up as charities.
    I entered the PRS to make PROFIT not provide cheap accommodation for those who couldn't be bothered to save up for a deposit like I had to to purchase my properties.

     
icon

Please login to comment

Zero Deposit Zero Deposit Zero Deposit
sign up