The rental supply crisis is set to continue after the Budget did not address the concerns raised by the property industry.
Before the Budget, property organisations warned that private sector rents would increase, with demand for homes outweighing the available supply.
Tenants will now continue to face this rental supply crisis since the spring Budget did not address these concerns. There will be no increases to the supply of privately rented homes, meaning that tenants will be affected the most whilst rent continues to rise.
This will make it more difficult for renters to save up to buy a house of their own, according to the Residential Landlords Association and the National Landlords Association.
Both associations are asking the Chancellor to get rid of stamp duty on the purchase of additional homes where landlords invest in property, adding to the net supply of housing such as new build properties, or bringing long term empty homes back into use.
They state that ‘ministers need to wake up to the reality of the damage their tax measures are doing to the private rented sector and support landlords to provide the new homes for private rent we desperately need.’
The Budget did, however, confirm that the stamp duty surcharge on non-UK resident overseas investment buyers will be two per cent.
