Propertymark, a prominent trade body representing property professionals, has expressed its approval of Housing Secretary Michael Gove’s recent commitment to abstain from introducing rent controls in England. This stance, they assert, aligns with their belief that such controls deter investment and lack effectiveness in regulating rental prices.
The trade body has emphasized that recent increases in rent costs can be attributed to the additional financial burdens placed on landlords due to legislative requirements, various tax changes, and other factors. Propertymark is urging the Westminster government to take further steps by reintroducing tax relief for landlords and reducing the three percent levy on buy-to-let property purchases. These measures are seen as essential to increase the availability of rental properties in the market.
Furthermore, the recent Second Reading debate of the Renters Reform Bill has spotlighted the need for a comprehensive government review of all taxes affecting private landlords to encourage investment in the rental sector.
In a letter addressed to the Select Committee on Housing, Levelling Up Secretary Michael Gove articulated his rejection of the call for public disclosure of Valuation Office Agency data for assessing justified rent increases. Gove emphasized that rents in the private rented sector should be negotiated between landlords and tenants without government intervention. He maintained that landlords should be able to adjust rents in accordance with market prices, while highlighting that rent increases significantly exceeding market rates should not serve as a means of backdoor eviction.
Timothy Douglas, Head of Policy and Campaigns at Propertymark, echoed the organization’s stance, stating, “Propertymark sees no advantages in restricting rent increases or introducing any rent stabilization measures. Flexible tenancies and rent prices driven by market forces have led to the success of the private rented sector across the UK. It is vital that landlords are not deterred from the market and have finances to invest and improve property standards. Increasing the supply of properties, rather than capping rents, will ensure rents fall, and agents and their landlords remain active in the market.”
The housing industry and property professionals continue to watch closely as government policies evolve in response to ongoing challenges in the rental sector. Propertymark’s advocacy for tax relief and investment-friendly policies has garnered attention in the midst of these debates.