The property market is grinding to a halt (https://www.bbc.co.uk/news/business-44794225) with many arguing which way things are going to go: are we heading for a crash? Will we tick over for the foreseeable future or will everything spring back into action? One thing is obvious however: Government meddling has caused a large proportion of this. A broad sector of the housing market, namely “Landlords” have been heavily penalised in the belief it will solve all problems for Generation Rent! From mountains of legislation through to a unique tax structure that no other sector of the UK economy experience, it has never been tougher for a landlord as it has been right now.

Now I’m not advocating falling back ten years and going to the old days where landlords would obviously take advantage of tenants in terms of deposits etc. and things like deposit protection are an obvious benefit but by cutting landlords out of the equation, are we actually deepening the housing crisis by minimising an already overstretched rental sector? If anything, would this not push up rents by reducing the rental supply of housing as landlords get fed up with the situation and sell their portfolio’s? An alternative could be to offer incentives to landlords or create structures that will benefit the welfare system. This would allow us to get the housing market moving again, increase rental supply and also give a host of new benefits:

  1. Property Pension Pots: This also solves a nice hole with the pension crisis as rental incomes from the young support the elderly. As property was invested in a PPP (nice anagram I know) we could scrap Stamp duty surcharges (up to a set level, say £1m) and tax income plus also potentially include National Health contributions as a company with employees on the proviso the property portfolio is mortgage free by the time the beneficiary is retired. Upon death there is a whole host of options available also.
  2. Tax breaks for longer tenancies: Why not offer landlords more if they do what you want? A sliding scale of taxation the longer a tenant remains in situ? This provides the tenant with a secure home and ticks a box for the government’s plans!
  3. Tax breaks for taking Housing Benefit (well, Universal Credit) tenants: You have to feel sorry for Local Councils (sometimes) when they have a whole host of people complaining they need housing and having no where to house them. In all seriousness, this would solve a huge problem for the government. Maybe launching a scheme that would allow for a landlord to guarantee their rent at a huge discount (bearing in mind the rents on offer from local councils in comparison to the private rented sector conditions) would entice a fair few landlords?

These are just three ideas we have that would take an over heavy handy of the housing market and try and bring back some prosperity and growth. Should you wish to talk to us regarding our views on the housing market, please do not hesitate to get in touch on 01376502500.