According to the new research, nearly two thirds of landlords (61%) might quit the private rental market if Labour win the general election on May 7th and introduce the promised capping of rent inflation.
Labour proposes to end above inflation rent increases in the first three years of a tenancy. The Residential Landlords' Association (RLA) say capping rent inflation is likely to impact on investment into the quality of homes already being rented privately and could force smaller landlords to exit the market. This will inevitably limit supply at a time when the UK faces a chronic shortage of homes across all tenures.
The study*also reveals that 80% of landlords are concerned about the election and how it will impact on their buy-to-let businesses. Only 11 per cent of landlords believe that the Government should introduce rent capping and two out of five landlords believe there is already too much legislation in the rental market. A further 42 per cent of landlords believe that tenants are given too much protection by legislation. (*Source: My Property Inventories research amongst 500 landlords, May 2015).
Danny Zane, Director of My Property Inventories said:
?Our research shows that landlords are very concerned about the election and potential new legislation that could be introduced. There have been previous attempts to cap rents, most recently in 1977, which led to many landlords leaving the market and big challenges were faced by landlords living with the legislation.
?Landlords were unable to raise rents unless they carried out refurbishment and even then, the rents did not cover the investment expenditure, so landlords were left out of pocket. The private rental market shrank considerably and it wasn?t until there was new legislation in the late eighties, that the market picked up.
?It?s no surprise then, that landlords are against any kind of rent control and capping and it is a worry for the whole industry. So many of us will be keeping a close eye on the election over the next few days and will be hoping for the best.?
My Property Inventories is an independent, professional inventory service provider, working with lettings agents, residential and commercial landlords, tenants, relocation agencies, corporate companies, embassies and various housing associations. The firm prides itself on its outstanding customer service within the inventory service industry and its inventory clerks are fully trained by the AIIC.
Article courtesy of LandlordZONE