Domestic Rents Will Continue To Rise in 2016 Due To Lack Of Supply
Domestic rents in the UK are set to continue to rise in 2016 driven up by the lack of housing stock currently available on the market.
According to findings from a new report conducted by multiple agencies, that news domestic rents are set to continue to grow in 2016 is likely to have a big impact on those who are trying to get to get on the housing ladder.
Legislation was also highlighted as a likely contributor to the forecasted increase in domestic rents as landlords look to claw back the money they stand to miss out on by meeting the new compliance costs.
David Cox, the managing director at Association of Residential Letting Agents said;
“We urge the Government to re-think its proposals around reducing Mortgage Interest Relief, scrapping the Wear and Tear Allowance and hiking up Stamp Duty by 3pc on buy to let properties.”
“Whilst these remain, the Government’s goal of increasing the percentage of people in home ownership is getting further out of reach. The issue of supply and demand in the rental market will be increasingly pushed to its limit with rising demand outstripping supply.”
“The Right to Rent checks introduced in the Immigration Act 2014 will be rolled out nationally from 01 February 2016 following a successful pilot scheme in the West Midlands.”
“However, we worry that the goodwill established towards the scheme may be tested by the increase in volume, disenfranchising landlords from the process.”
Domestic Rents may increase, but it’s not all bad news for tenants
Not all of the regulation in the rental property sector is bad news and Mr. Cox welcomed the plans by the government who are ‘tightening up’ things with a view to tackling the issue of rogue landlords.
Commenting on this Mr. Cox said;
“We hope that the provisions of the Housing and Planning Bill, when brought into force, will give enforcing bodies and the courts more teeth in tackling rogue and criminal landlords and agents.”
“This will develop in 2016 to enforce harsher penalties for landlords and unregulated agents that aren’t complying with basic laws.”
