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Catastrophe for private rented sector? Hardly, says Shelter
Original Author: Rosalind Renshaw
The lettings industry could be damaging its credibility by describing clampdowns on the buy-to-let sector as catastrophic, Shelter has claimed.
The word ‘catastrophic’ was used by ARLA managing director David Cox to describe tax changes announced by the Chancellor.
But yesterday Roger Harding, of the housing charity Shelter, said using the language of ‘catastrophe’ at a time when people are having their benefits cut could harm the image of the industry, especially if their predictions of disaster fail to materialise.
He was speaking during a debate on the future of agency at the Association of Residential Lettings Agents 2016 conference, adding: “If we don’t see the sort of collapse people are talking about, then the credibility of the sector will be weakened.”
The comments came after Carolyn Uphill of the National Landlords Association said members were looking to sell up as a result of recent changes such as the end of mortgage interest relief and extra stamp duty fees.
But she said they were not necessarily freeing up housing stock as in some cases property was being sold to other investors.
Sally Lawson, vice-president of ARLA, said: “I am in the catastrophe camp. Landlords won’t be able to claim mortgage relief, people are being pushed into deficit – it’s now costing them to be landlords.”
She warned that if the industry moves towards institutional landlords then tenants would be dealing with a “different animal” that wouldn’t necessarily invest in the areas most needed.
Kevin Hollinrake, co-founder of Hunters and now MP for Thirsk and Malton, said he was concerned for smaller landlords.
He said: “I don’t think the changes are catastrophic but it’s a huge issue for small landlords. There are lots of clients who want to use property as a savings vehicle.
“We need to be careful that we don’t deter smaller landlords.”
http://www.propertyindustryeye.com/catastrophe-private-rented-sector-hardly-says-shelter/
