Around 12% of letting agents are reporting falling rents over the past few weeks. One in nine have experienced an immediate dip in rents following the EU referendum.
“What we need is some certainty from the new government that housing remains a priority with the rental market playing a central role. For example, we want to avoid a situation where institutional investors start pulling away from the market, because ultimately this will impact tenants by squeezing supply further and pushing up rents. Although we’ve seen some hesitation from landlords this is relatively mild and it’s important they do not act in haste. Any inevitable longer term changes will then be taken on board with greater ease.”
A separate report by the Taxpayer’s Alliance has called on stamp duty on homes to be cut by half and later abolished, as it is exacerbating supply shortfalls and pushing up rents for tenants. It said the extra 3% stamp duty surcharge for buy-to-let and additional homes in particular should be abolished, warning that it will drive up rents for tenants as investors pass on costs.
Excerpt The Guardian.
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