The March Budget of 2020 didn’t pan out as people expected. Given the importance of housing during the Conservative Party’s General Election campaign, many felt housing matters would be front and centre when it came to the Budget.

Of course, things didn’t go to plan. There was a change of Chancellor, and of course, the Coronavirus needs to be dealt with. Therefore, it feels as though housing, along with many other important aspects, didn’t get the coverage it requires.

There has been criticism of the Government surrounding letting industry issues

The start of 2020 saw many people feel quite optimistic about the property market and how the year would pan out, but this is a challenging time. It is interesting to note that two leading letting industry organisations have come together to voice their displeasure with the Budget and the Government.

The Residential Landlords Association (RLA) and the National Landlords Association (NLA) released a joint statement, saying; “The Government is undermining its own efforts to boost homeownership through its attacks on the private rented sector. By choking-off supply and making renting more expensive it is tenants who are hardest hit. 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.”

There is a feeling tenants will continue to suffer due to a lack of rental property being supplied to the market. While this was a challenging and unique Budget, there was a failure to improve the supply of privately rented property. More could be done to assist landlords, and in turn, this will offer more support and guidance for tenants.

When buyers cannot purchase homes, there is a greater demand for rental property

The RLA and the NLA believe it will become harder for people to save money to buy property, which increases the demand for rental property. Professor David Miles is a former member of the Bank of England’s Monetary Policy Committee and he delivered a warning saying; “aspiring first-time buyers are hardly helped by squeezing the supply of rental property and driving rents up.”

 The RLA and the NLA have also requested that stamp duty be scrapped on the buying of additional properties in special circumstances. This is an issue that affects landlords, and limits the supply of rental property. The letting industry bodies are calling for a scrapping of stamp duty when landlords add to the net supply of housing. This is an outcome which can be achieved when landlords purchase new-build properties to let or they bring homes which have been empty for a considerable period of time back into common use.

As letting industry specialists in the local area, we are keen to help you stay informed of all industry news and matters.

If you are a landlord looking for support and guidance during a challenging time, contact Andrew Lees today, and we will be more than happy to assist you.