With the Autumn Budget being delivered this Wednesday (22nd November 2017), industry experts are coming out in force to offer their opinions on what needs to be done.
Our writer Rose, on behalf of our partner Just Landlords, has given her thoughts.
Now, Peter Williams, the Executive Director of the Intermediary Mortgage Lenders Association (IMLA), explains what he wants the Chancellor to announce regarding housing, buy-to-let and first time buyers on Wednesday: “Expectations are rising that decisive action on pushing back the decline of homeownership might emerge from [this] week’s Budget, but the private rented sector in general and the buy-to-let market particular must be no-go-zones for the Chancellor when it comes to raising revenues to solve the UK housing crisis.
“The private rental sector is already in danger of wilting under sustained pressure of Government action, and the market is still in a state of flux due to the raft of regulatory changes imposed over the last two years. Far-reaching policies to reduce mortgage interest tax relief and raise Stamp Duty charges – at the same time as tightening underwriting criteria – are still new, and their effects have yet to fully bed in. The buy-to-let slowdown has already started and is forecast to continue, reducing further investment and portfolio expansion.”
He continues: “The Chancellor is under increasing pressure to outline a solution to the housing crisis at Wednesday’s Autumn Budget. According to IMLA’s research, the majority of lenders agree this should take the form of increased efforts to boost overall housebuilding (79%) and more provide starter homes (58%). Further punitive tax and regulation on buy-to-let is not the answer, which could cause the supply of high quality rental accommodation to dwindle even further.
“Any action on further boosting housebuilding should be welcomed, but new homes won’t materialise overnight and the supply of affordable homes remains critically low. People still need somewhere to live while we fix the supply shortage: 4.3m people are currently renting in the UK, and rely on a well-served and well-supported private rented sector while trying to save for a home of their own. Further punitive taxation measures for landlords will reduce supply and put pressure on to raise rents, both causing more problems for the households who currently rent but hope to buy. Landlords are not the problem, rather it is the lack of homes and not least affordable homes. That’s where the Budget should focus.”
Williams adds: “We hope to see an Autumn Budget that is supportive of both ends of the property market, as one without the other will only worsen the UK housing crisis.”
Last week, a range of industry experts offered their opinions: https://www.justlandlords.co.uk/news/agent-begs-chancellor-homes-stamp-duty/
We also have further predictions from Will Handley, the CEO of HomeRenter, on his predictions. He offers his wish list: “We want to see a fairer, more equitable marketplace for the UK’s private rental sector. Encouragingly, in recent times, the Government has introduced a raft of measures that penalise private landlords with a view to create more of a renters’ market. However, there’s a real and present danger that these prove to be boomerang policies which actually result in more costs being passed on to the unwitting tenant. Whilst we sincerely hope several of these policies might be revised or heavily tweaked next Wednesday, we’re not holding our breath. So, what can we expect?