UK close to critical property shortage, Rics warns

 

The body of chartered surveyors has warned that, if no measures are taken, the 1.8m extra households looking for rent will be left in the dark by 2025.

To help solve the issue, the institution has called on the Government to offer tax breaks to encourage building and investment in the sector.

Stamp duty change – the underlying factor

According to Rics data, the number of households renting rose from 2.3m in 2001 to 5.4m in 2014. Any further investment from landlords in property had then been hit by changes to stamp duty made earlier this year.

Anyone buying a home now has to pay an additional 3% stamp duty surcharge, which led to a spike in property purchases in March, just before the new rule come into effect.

https://www.buyassociation.co.uk/2016/09/30/tips-preparing-completion-off-plan-purchase/

Next year, landlords will be hit once again. This time their right to deduct their mortgage interest from their tax bill will be removed.

Landlords and first-time buyers

The suggestion Rics made, to reverse the additional stamp duty would infuriate most wannabe first-time buyers as a lot of them claim to frequently be outbid by investors.

Generation Rent, a group that fights for better conditions for tenants, told the BBC:

It does give first-time buyers a much-needed advantage against people who are simply betting that house prices will keep going up.”

“In the first three months of the surcharge, the tax on second homes raised £424m – that cash could help build new homes for people on low incomes.”

David Cox, the managing director of the Association of Residential Letting Agents (ARLA) and representing Generation Rent’s counterpart said:

Tenants will be hurt most, as landlords recover the stamp duty increase by charging tenants more,”

“The simple answer is that we need to build more homes.”

The other issues

On top of the reversal of the stamp duty increase, Rics revealed three other core aspects of Britain’s property market that need to change for a healthy future:

  • Private house builders to be encouraged to build specifically for the rental sector
  • Pension funds to be given tax breaks to fund large scale rental properties
  • Councils to be encouraged to release brownfield sites for building homes for tenants

Highgrove Mews

High Net Yield Freehold Houses

  • Commutable to London (27 mins to central Paddington station)
  • Rental demand extremely strong with large industry presence in Reading
  • Freehold with 4% net yield

£284,955 - £457,000

St Petersgate – Stockport Manchester

New Launch - Stockport Manchester, apartments from £160,000

  • Discounted launch prices from £160,000
  • Excellent transport links with 3 trains per hour to London Euston and only 9 mins journey to Manchester Piccadilly
  • Experienced development team

Assured Rent Housing Association Leases

Assured Rent Housing Association Leases

  • Assured rent & no rental voids
  • Tenant damage cover & newly refurbished inline with requirements of a corporate sitting tenant
  • Free property and lettings management

From £62,000

Emerging Birmingham Commuter Town With Properties From Just £104,000

The emerging Birmingham commuter town where properties are selling in an average of just 24 days

  • A collection of 62 two bedroom apartments and 28 one bedroom apartments.
  • DE14 is one of the fastest selling postcodes in the West Midlands.
  • 23 minute train journey into Birmingham New Street Station.

Properties from £104,000

Mill, Stockport

The Northwest's emerging property hotspot

  • Discounted off-plan 2-bed prices from £162,000
  • Completion date - Q4 2021
  • Rental yields - 6% plus

Discounted off-plan 2-bed prices from £162,000

South Central – Birmingham City Centre Apartments

Highly anticipated 28 storey launch in Birmingham City Centre with an impressive roof garden and communal facilities.

  • 154 units across 28 storeys
  • Residential multi-media community room, gym, roof garden and sky cinema
  • Excellent future connectivity via the metro system to other key transport hubs and locations around the city

from £205,800

ba-

Talk to us

Speak to our UK property experts today: 

+44 (0) 333 123 0320

Open from 9am-6pm GMT

+852 9865 4446

Open from 9am-6pm HKT

Stamp Duty Calculator

.

Unlock members only investment opportunities and full development details. Join now – it’s free, quick and easy.

Login

Not a member? Sign up for free

UK close to critical property shortage, Rics warns

UK close to critical property shortage, Rics warns

Example

By submitting your details via this online form you agree to be contacted via email/phone/SMS by Direct Marketplace Ltd t/a BuyAssociation in relation to property investment and property developments . We do not share your personal details with third parties.  To view our full Privacy Policy click here.