RLA: Government policies are the biggest threat to rent levels
The biggest threat to rent levels are the policies being pursued by the government,which are choking off the supply of homes for private rent as demand is increasing, David Smith, policy director for the Residential Landlords Association, has argued.
He said the RLA warned ministers that this would happen but they have not listened.
A report by the Resolution Foundation warned that rent levels are making young people less mobile.
Meanwhile the Affordable Housing Commission said the number of households facing affordability issues with their housing costs has increased most in the rental market.
Smith said: “Instead of attacking the private rented sector we need pro-growth policies that recognise the need for more homes of a good standard and at an affordable rent.
“Making renting less attractive for landlords will not make a substantial difference to the availability of property. We must focus on building more homes to address this.”
The Royal Institution for Chartered Surveyors has warned that average annual rent rises are likely to be around 3% for the next five years as a result of the demand for rental properties continuing to outstrip supply.
Government statistics show that 10% of private landlords representing 18% of tenancies are already planning to decrease the number of properties they rent out, whilst 5% of landlords, representing 5% of tenancies, plan to sell all of their properties.
And recent stamp duty statistics point to investment in the sector slowing up.