In a compelling op-ed for the Daily Telegraph, former housing secretary Robert Jenrick has called upon the government to cease what he describes as a ‘war’ on small landlords, urging a rethink of policies that have inadvertently harmed the rental market.
Jenrick highlights the need for the upcoming Budget to reinstate mortgage interest relief, a benefit that was eliminated to discourage buy-to-let investments. According to him, this strategy has backfired, causing numerous landlords to exit the market and leading to a diminished supply of rental properties. He emphasizes the impact in rural areas, where large institutional investors are less prevalent.
The former minister contends that stamp duty reform is also crucial, proposing options such as raising thresholds, lowering rates, or even abolishing the tax altogether. This, he believes, would stimulate the housing market, promoting the uptake of long-term mortgages spanning 25 or 30 years, thereby enhancing stability and affordability for both homeowners and renters.
In his op-ed titled ‘We should end the war on small landlords,’ Jenrick writes, “We should end the war on small landlords, which has proven to be so counter-productive for renters. It’s time to bring back mortgage interest relief for smaller landlords which was removed to choke off the buy to let boom of yesteryear. It certainly achieved that purpose, but at the expense of thousands of small property investors.”
Jenrick notes the adverse effects of the dwindling number of landlords, stating, “The market has lost so many landlords that there are not enough properties available for renters, especially outside the big cities where institutional landlords might reasonably be expected to step in.”
He further asserts that the suggested measures would ‘turn a corner on the war against housing and landlords and give aspiration and economic growth a fighting chance.’ However, he acknowledges that addressing the housing crisis requires a multifaceted approach, with increased demand alone insufficient.
Jenrick advocates for a medium-term solution, emphasizing the need to ‘build, build, build’ more homes. He proposes revitalizing planning reforms to support small builders, cutting red tape and environmental regulations, expanding new towns, and focusing on urban density and regeneration.
Crucially, Jenrick contends that the housing crisis cannot be adequately tackled without addressing the issue of mass immigration, which he sees as the ‘flip side of the coin.’ He claims to have secured a package to reduce legal migration by 300,000 and insists that further reforms are necessary to alleviate the strain on housing, particularly in major cities.