UK Housing Market
Renter's Rights Bill: London Landlords Continue to Leave the Market in Record Numbers
Exclusive data from Cornerstone Tax reveals that almost one-in-four London Landlords are selling up due to rising costs associated with their property
David Hannah, Group Chairman of Cornerstone Tax, is available to discuss how joined-up thinking is necessary to reinvigorate Britain’s ailing rental market
Today will see the Renter's Rights Bill introduced to parliament. Promising to ban "no fault" evictions for new and existing tenants, whilst also curbing bidding wars and limiting in-tenancy rent rises. The bill promises to rebalance the relationship between tenant and landlord, however, those from within the industry, including the National Residential Landlords Association have warned that landlords may respond with rent rises in city centres and tourist hotspots. Exclusive data from Cornerstone Tax, the UK’s leading property tax consultancy, reveals that 23% of London landlords are now selling up due to the rising costs associated with their property.
Adobe
-
27% of Londoners would consider purchasing buy-to-let properties but became dissuaded due to increased rules and regulations
-
45% of London tenants fear that they would be stuck renting for the rest of their life
-
29% of London tenants have had to change rental properties more than five times in the past five years
The persistence of the rental market’s structural problems indicates that lower mortgage rates aren’t necessarily the answer to the sector’s woes. According to David Hannah, Group Chairman of Cornerstone Tax, the solution lies within providing the necessary tax incentives to bring investment back. Cornerstone’s data reveals that 27% of Londoners at one-time considered purchasing a buy-to-let property but became dissuaded by the increased rules and regulations. David Hannah claims that measures, such as the abolition of the second-home surcharge for rental properties, and the reintroduction of stamp duty exemptions – particularly multiple dwellings relief – would be a step in the right direction for aspiring property owners.
The difficulties currently facing landlords continue to filter down towards tenants, with the average cost of rent for a London property currently standing at £2,121 per month, following a 4.2% growth in the last year. Cornerstone’s research illuminates the mental toll on the city’s renters, with almost half of the capital’s tenants fearing that they will be stuck renting for the rest of their lives.
David Hannah, Group Chairman of Cornerstone Tax, comments:
"Our data highlights a clear issue in the UK's rental market, many of these landlords took out mortgages on buy-to-let schemes during a period of sustained low interest rates; fast forward to 2024 and the pressure currently facing landlords is simply too much. High interest rates and the highest tax burden since the second world war have forced thousands of landlords to sell up, which then puts further pressure on renters due to a lack of stock.
“It would make sense for the new Government to suspend, or even abolish, the 3% surcharge where properties are being acquired for private rental sector investment. Removing this measure would encourage landlords to increase their holdings, rather than exit the market – reversing the decline in supply of rental homes and potentially expand it to the point where demand no longer outstrips supply.”
David Hannah, Group Chairman
