A high profile lettings and estate agent is calling on Chancellor Rachel Reeves to use today’s Spring Statement to help the rental sector.

Jeremy Leaf, the north London estate agent and former RICS residential chairman, says there are several moves the Chancellor could make which would help stem the exodus of landlords, and help tenants too.

He says: “Reducing the time to legitimately evict disruptive tenants prior to the introduction of the Renters Rights Bill later this year would help to maintain the supply of accommodation. but would be equally welcome by tenants just wanting a quieter life. 

“Better enforcement of other short-let accommodation would level the playing field with longer-term lettings and represent another way of reducing the landlord exodus into that sector in view of its lack of regulation. 

“It shouldn’t be forgotten either that many landlords are doing the job of local authorities unable or unwilling to provide affordable homes with up to 25%, or over one million, of private rented sector tenants paying housing benefit.”

Leaf makes his suggestions in a preview of this afternoon’s closely-watched statement.

He continues: “While the economic climate remains unsettled both at home and abroad, investors and developers are reluctant to act. Uncertainty is the enemy of investment. 

“Here, deep cuts to welfare benefits, increases in defence spending while interest rates, inflation and borrowing remain high, means extra funding for private housebuilding, renting or other parts of the industry is unlikely. Employer worries about imminent rises in national insurance and the minimum wage will weigh just as heavily on those who may have otherwise considered taking on or adding to existing finance too.

Given this background, the Chancellor’s options are limited and the Spring Statement is probably just as much about what she does as doesn’t do, as far as property is concerned. 

More than anything, we don’t want Rachel Reeves to compromise existing buyer and seller activity but do want her to further support growth where possible. A steady rise in the number and pace of transactions is not only good for the property market but for the economy in view of the multiplier effect on job and social mobility. In particular, first-time buyers are pivotal as they regularly trade up so release ‘second steppers’ as well as connect chains.”

Leaf believes a substitute for Help To Buy is unlikely to be on the cards but he does suggest some low-cost measures to help the market.

“The shortage of affordable homes for sale and rent is a significant contributor to the housing crisis but cannot be addressed by building homes alone. More efficient use of existing resources such as reducing record numbers of empty properties as well as better utilising unused and under-used land and buildings in anticipation of substantial population growth is vital.

“It’s not just planning but affordable lending and the ability of local authorities to deliver suitable units in appropriate places which is deterring investment – despite the government’s ambitious ‘how, not if’ targets. 

“In any event, planning consents are still taking too long, not least due to a shortage of Council resources, capacity and approved local plans. Enforceable time limits for dealing with planning applications and more standardised ‘boundary-blind’ decision-making would improve certainty – especially for the crucial SME sector. We find most SMEs cannot afford to pause unlike larger companies and invariably blight neighbourhoods if their projects stay undeveloped for longer than necessary.”

The statement takes place at lunchtime today and a summary will appear on Letting Agent Today after the Chancellor speaks.

Ahead of that, Jeremy Leaf concludes: “Overall, no silver bullets please Rachel, as small steps can still make a significant difference.”