View more on these topics

Imla calls for government to “put the brakes” on BTL intervention

Imla is calling for the government to “put the brakes on regulating and taxing” landlords, citing disincentivised small landlords.

The trade association warns that the private rented sector is still encountering adverse effects as a result of tax and regulatory changes of the last few years. Imla believes that further changes could impact tenant choice and raise rents.

The English Private Landlord Survey 2018 highlights that 61 per cent of landlords planning to sell some, or all of their properties, stated legislative changes as the reason behind their intentions.

The survey outlines that the number of landlords with one rental property fell from 78 per cent to 45 per cent between 2010 and 2018.

In contrast, the number of landlords who own five or more properties increased from 5 per cent to 17 per cent in same time frame.

Professional landlords now account for 48 per cent of the private rented sector, having increased from 38 per cent in 2010. Meanwhile, the number of singe-property landlords fell from 40 per cent to 21 per cent.

Imla believes these changes are the result of a constricted mortgage market during the financial crisis, large institutions investing in build-to-rent accommodation, and government intervention leading to small-scale property investment becoming less profitable.

Furthermore, data collected by Imla shows that the number of properties purchased for BTL increased by 250 per cent between 2009 and 2015, a rise from £4.5bn to £15.6bn.

However, since 2015, BTL purchases have fallen by 40 per cent to £9.1bn.

Overall, the private rented sector has increased from making up 9 per cent of Great Britain’s housing stock in 1999, to 20 per cent in 2016.

Imla executive director Kate Davies says: “We are concerned that layers of government intervention have adversely affected small-scale landlords’ ability and appetite to invest in properties over recent years.

“As increased tax and regulatory responsibilities increasingly disincentivise landlords, we face a possible topping out of the private rented sector.

“Squeezing the private rented sector puts the pressure on millions of renters in Britain. Restricting the PRS risks a lack of supply, rising rents and a fall in the quality of rental accommodation.

“We have repeatedly called for the government to put the brakes on regulating and taxing our nation’s landlords. We urge a more moderate approach to ensure our private rental sector remains strong for the millions of renters who rely on it.”

Recommended

Mortgage spreads “cannot go much lower”: Imla

Changes in capital requirements for lenders may lead to mortgage spreads widening in the next quarter, according to the Intermediary Mortgage Lenders Association. The comment from executive director Kate Davies follows the publication of the Bank of England’s quarterly survey of credit conditions for UK banks and building societies. The report reveals that secured credit […]

Three-year high in successful mortgage applications: Imla

The proportion of mortgage applications which progressed to an offer reached a three-year high in the first quarter of 2019, figures from the Intermediary Mortgage Lenders Association reveal. Brokers were able to help 89 per cent of applicants to attain a firm mortgage offer in the first three months of this year, the latest Mortgage […]

Mortgage market to remain flat in 2019: Imla

The intermediary mortgage lenders association has predicted that total gross mortgage lending, loans for house purchase and remortgaging activity will remain flat in 2019. Imla estimates the markets to be at £269bn, £156bn, and £102bn, respectively. The body adds that, according to its latest report, nearly five million borrowers would have been expected to buy their first […]

Newsletter

News and expert analysis straight to your inbox

Sign up