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Tax Breaks for Landlords Needed to Address Shortage of Rental Homes

With the UK’s private rental market set to grow by 1.8 million by 2025, RICS is calling for the Government to offer tax breaks for landlords to encourage more building and investing in the sector.

With the UK’s private rental market set to grow by 1.8 million by 2025, RICS is calling for the Government to offer tax breaks for landlords to encourage more building and investing in the sector.

A new report by The Royal Institution of Royal Surveyors (RICS) shows that the UK’s private rental market has grown considerably over the last decade, with the number of households in the sector increasing from 2.3 million to an astonishing 5.4 million between 2001 and 2014.


According to RICS’ latest projections, however, the UK’s private rental market is expected to grow at a rate of 1.8 million households by 2025 – putting further pressure in a critically undersupply rental property market.


To address the imminent rise in demand, RICS is calling for the Government to ease the financial pressure off landlords through tax cuts.


RICS claims that recent changes to Stamp Duty, which saw a 3% tax increase on second homes from the 1st of April, should be reversed as the organisation believes that the change has impacted the market negatively, with transactions declining shortly after the tax increase.


The institute also advocates the pioneering of a new build-to-rent sector, with the Government focusing on constructing homes specifically for residential letting; as well as a cease on tax increases on pensions to fund large scale rental properties; and the release of brownfield sites by Councils for the building of new rental homes.


RICS’ claims follow the government’s £5 billion pledge to tackle the UK’s housing shortage at Monday's Conservative Party Conference.

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