A chief executive officer of a leading lettings agency has slammed the Government’s performance for its first year in office.
Writing in the property magazine Estates Gazette, Ian Wilson, chief executive of Martin & Co, gave David Cameron just two out of ten in a ‘scorecard exercise.’
Performance
Mr Wilson’s analysis focused on how policies implemented or announced in the last twelve months have impacted on the residential property market.
In the last year, cuts in landlords’ mortgage interest tax, the rises in stamp duty on buy-to-let transactions, Right to Rent immigration checks and alterations to Wear and Tear allowance have all had impacts on the sector.
Wilson is particularly damning in his assessment, noting, ‘the Conservative government has failed the private rental sector. Unintended consequences of the reforms are emerging, with residential landlords fighting to complete on properties before April, pushing first time buyers aside. House prices are artificially high in the UK because of restrictions on land use dating back to World War 2.’[1]
CEO of lettings agency in scathing attack on the government
Solutions
Continuing, Wilson said, ‘the private rental sector has been superb in providing housing solutions for those unable to buy a home and as such, the sector has doubled in the last 20 years, organically and with no government support. Individuals have invested in the buy-to-let sector out of their own pocket, made feasible by allowing the interest on a Buy to Let loan to be offset as a business expense.’[1]
‘The changes the Conservative are imposing have not only caught people off guard, undermining confidence in a highly valuable sector of the market, but have deliberately penalised small time landlords, the stalwarts of the sector. Meanwhile corporate organisations, who have offered little in the way of housing solutions, retain in all tax benefits. The government needs to think hard before using a blunt instrument in a fragile housing market as it could have far longer term implications,’ Wilson added.[1]
[1] https://www.lettingagenttoday.co.uk/breaking-news/2016/4/agency-chief-gives-cameron-2-out-of-10-for-lettings-sector-performance