IN the last ten years there has been a 74 per cent rise in private renters, bringing the total number to 4.7million households in England.
The huge surge has coincided with private landlords being hit with a tough stance on taxes, encouraging them to increase rent to cover costs.
It has left renters desperate to find a solution as the amount they pay each month has risen 60 per cent faster than wages between 2011-2017.
A ground-breaking plan to guarantee three-year long tenancies looked to be the saviour until the government quietly backtracked in September.
The policy would have given long-term security to tenants at the same as allowing them to move out earlier if they wanted to.
But fears that landlords would be put off investing because they can’t increase rent year-on-year gave the government cold feet. In Scotland, tenants already have the right to stay in their home for as long as they like.
Visionary Finance Managing Director Hiten Ganatra said: “In recent years rents have soared as the supply has fallen because of onerous regulations and tax policies, which made it a less-attractive investment for landlords.
“We need to increase the amount of private rented properties, and relax the attack on landlords so they can offer more competitive prices to renters.
“The Government needs to take a serious look at the market and unlock investment for the benefit of tenants, or risk the wrath of both renters and landlords.”
Shelter reports that private renters will have a big influence on the next election as they call on the government to make change.
It’s thought Tory MPs think the policy could keep their party in power at the next election by winning back tens of thousands of renters who defected to Labour in 2017.
To read more about how the buy-to-let tax has punished landlords, see our last blog here.
Visionary Finance is a fee free mortgage broker based in London and Milton Keynes. If you’re thinking of making an investment in the UK give us a call on 01908 465100 and our experienced team will work with you to make it a success