Tenants could end up paying the price if the Government continues to put pressure on landlords, according to Industry leaders.
The warning followed reports that the Chancellor could raise taxes on landlords, with tax experts suggesting National Insurance (NI) could be added to rental income.
However, speaking at a recent roundtable on the future of the mortgage market hosted by communications consultancy MRM, industry leaders warned further interventions in the private rental sector could harm tenants.
John Davison, head of product, proposition and distribution at Perenna, said: “The more you tax landlords, the more you squeeze them out of the market, which means that rents rise and fewer people can afford to rent. So, ultimately, it’s the tenants that lose out.”
“Successive governments have targeted landlords in a bid to raise extra revenue and free up housing stock for first-time buyers.
“As Chancellor, George Osborne hit landlords with higher rates of stamp duty in 2015 and scrapped tax relief on mortgage interest payments a few years later.”
Davison added: “The current Labour Government is pressing ahead with plans to tighten the regulation of the sector, through the Renters’ Rights Bill.
“It is also looking to force new energy efficiency standards on private rented properties by as early as 2030.”
Elise Coole, managing director at Keystone Property Finance, said: “We are seeing more Limited Company landlords and, on the whole, they are the younger generation responding to new market conditions.
“The limited company is now firmly the structure of choice for younger investors starting out on their journey.”
Jeni Browne, sales director at broker MFB, said: “There was a big influx of buy-to-let landlords in their 30s and 40s after the credit crisis, with more lenient lending parameters at that time. Most are now building up to retirement and now seeing too much hard work, too much regulation and now just want to sell.
“But I do think we’re going to have a new wave of smaller landlords coming back to the table with a clean slate who have their eyes more open to what being a landlord is now.
“The private rental sector is a fantastic place to be, it offers social security and provides a really important service as well.”
