Almost a fifth (19%) of tenants have been forced to move five times in less than five years due to landlords exiting the market, according to new research from Cornerstone Tax.
Cornerstone’s research reveals that 19% of tenants have had to change rental properties through no fault of their own as landlords are forced to either exit the market or pass on these record high mortgage costs onto their tenants.
Moreover, as demand continues to outstrip supply within the market, 17% of tenants have also admitted that they have lost out on a property that they wanted to rent in the last two years due to a bidding war.
David Hannah, Group Chairman of Cornerstone Tax, urges the government to focus on addressing the wider housing affordability crisis by incentivising landlords.
The government’s plan to develop 12 new towns is set to rely significantly on corporate landlords to meet its ambitious housing targets, with build-to-rent homes expected to comprise up to a quarter of the total properties.
Recent analysis by the think tank Institute for Public Policy Research found that developers have secured planning permission for over 1.4 million homes since 2007 but have not gone on to build them.
Incentives for landlords
And with these 1.4 million approved homes left unbuilt, Cornerstone group chairman David Hannah, is calling on the government to reconsider its housing reforms and provide serious incentives for landlords to remain in the market.
Hannah said the UK government had missed key opportunities to tackle the country’s growing housing crisis. These included failing to reduce the second home surcharge to, decreasing stamp duty thresholds, and not reinstating Multiple Dwellings Relief.
Exclusive data from Cornerstone Tax further underscores the impact of these stamp duty reforms, revealing that 26% of Brits already aren’t able to purchase property due to unaffordable stamp duty costs.
Meanwhile, 15% of landlords are considering selling due to rising expenses, and 18% of prospective buy-to-let investors have been deterred by increasingly complex regulations.
Hannah commented: “This year, the government must urgently recognise the ever-pressing need for drastic changes to the housing market. The previous government’s decision to abolish Multiple Dwellings Relief (MDR) was beyond counterproductive and will result in fewer new homes being built, with a significant drop in both domestic and overseas investment into housing delivery.
“By removing a critical tax break such as MDR and failing to incentivise landlords who are fleeing the market, the government’s refusal to reverse these policies undermines the build-to-rent sector, which relies heavily on such incentives to maintain and expand the housing supply.
Furthermore, he argued that the increase in the second home surcharge and Stamp Duty thresholds reforms would not only reduce the stock of homes in the UK, but would make it harder for first-time buyers to get onto the property ladder.
“New policies need to promote affordability, accessibility and support for businesses building in Britain. The government must now listen to property firms and industry stakeholders to solve this vitally discouraging situation for Brits, otherwise this crisis will continue to cause chaos for years to come.”
