In a fervent appeal, a prominent agency chain has called upon the Conservative Party to set aside their internal disputes during the party conference and take decisive action to address the critical shortage of rental properties in the private sector. Winkworth, a prominent player in the real estate industry, is urging the Tories to reinstate mortgage interest relief for landlords as a means to rejuvenate the ailing rental market.
Dominic Agace, Chief Executive of Winkworth, conveyed this urgent message in the latest episode of “The Property Exchange” podcast, shedding light on the pressing issues plaguing the rental sector. Agace articulated, “The most acute structural problem is in the rental sector, which has become ensnared in political manoeuvring.”
Highlighting the grim statistics, Agace stated, “We are witnessing staggering rent increases of 15 percent in London this year, with a dire forecast of 10 percent for the next year. The dearth of available rental properties can be traced back to heightened government intervention and tax reforms.”
Emphasizing the pivotal role played by the rental sector in a city’s vitality, Agace remarked, “A robust rental sector is indispensable for attracting young professionals to a city. Alarming accounts of families crammed into smaller accommodations due to financial constraints are becoming increasingly common. It is imperative that people can live in places suitable for their work and lifestyle.”
While acknowledging the emergence of “build to rent” properties owned by institutions, Agace pointed out, “These properties are yet to meet the surging demand. The government must swiftly act by reversing tax measures to incentivize landlords.”
Agace further underscored the detrimental effects of internal party strife, stating, “In-fighting has led to the vanishing of housing targets, dilution of manifesto promises of 300,000 homes annually, and the erosion of national planning frameworks. Local authorities have been depleted due to inadequate investment, rendering planning officers regional rather than local. The convoluted legislation results in protracted planning processes, hampering home construction. Simplification is the need of the hour, facilitating local access to the construction of more suitable properties.”
Adam Stackhouse, Managing Director of Developments and Commercial Investments at Winkworth, proposed a pragmatic solution during the podcast. He advocated the immediate formation of a planning enforcement team to boost housing supply.
Stackhouse suggested, “A collaborative task force comprising both public and private sector experts could be deployed to local authorities to resolve these issues, with a 90-day turnaround time for reviewing stalled planning applications. The government should also introduce incentives that reflect fair land values.”
He went on to highlight the housebuilders’ eagerness to utilize land for construction, stating, “Housebuilders are averse to sitting on undeveloped land; their preference is to build. Additionally, there is a severe deficit in the social housing sector, with just 33,000 properties constructed in recent years and a waiting list exceeding one million.”
As the Conservative Party convenes for its conference, the urgent plea from Winkworth serves as a stark reminder of the challenges plaguing the rental sector and the critical need for political action to alleviate the housing crisis. With the future of countless individuals and families hanging in the balance, the call for a swift resolution has never been more resounding.