Labour has “golden opportunity” to solve renting crisis says agency boss

The new Labour government has a “golden opportunity its” to resolve the rental crisis, but must give clarity to the industry about future taxes and the contents of the Renters Rights Bill.

That’s the view from Antony Lark, joint chief executive of lettings and sales agency Spicerhaart.

He says: “The Labour government has a golden opportunity to resolve issues within the rental market and remove uncertainty surrounding the potential impact of the Renters’ Rights Bill. Clear, consistent regulation will allow landlords to plan and manage their portfolios more effectively, ensuring a decent supply of rental properties in the market, which will restore stability to the market once more.”

Lark says such clarity would help counteract the trend of landlords quitting buy to let.

He comments: “We’re noticing that the level of landlords leaving is higher than anticipated – particularly among those who’ve retired, who need the money to meet rising living costs, or are helping children buy first homes, or who’ve concerns over inheritance tax.

“This exodus is paving the way for Build to Rent investors and younger landlords under 40, who now constitute a much larger proportion of the landlord demographic than in the previous decade.

“The new landlords entering the market are more likely to buy in higher-yield areas further north, such as Stoke-on-Trent and Crewe, where yields can be as high as 9% on a smaller investment, spreading risk over a larger portfolio.

“You might think that rents would continue to rise, having seen a 6.6% increase in the last year, compared to 10% a year ago. Instead, despite significant demand for rental property, we’re seeing this start to plateau as tenants have now reached a critical point in terms of what they’ll pay.”

Lark also believes that there are now fewer rogue landlords than before, as the sector professionalises. 

“The emphasis on protecting tenant safety through rigorous regulatory measures and licensing is broadly welcomed by professional agents. However, there is a critical need for policies that also incentivise investment in the property market,” Lark said.

“We support the Labour government’s regularity measures protecting tenants’ safety. Licensing will help with this. But the biggest impact would come from reviewing the reversal of mortgage tax relief for buy-to-let properties. Such a monetary policy change would inject much-needed growth into the market.”