Successive tax measures targeting buy-to-let investors have exacerbated Britain’s rental crisis, according to Foxtons’ CEO, Guy Gittins, as reported by the Telegraph.
Gittins, who leads the London-centric estate agency, highlighted that the lack of government incentives has discouraged private landlords, resulting in fewer rental properties. He emphasised that the housing crisis in the UK has intensified since the pandemic, leading to a significant rise in rental prices.
Gittins attributed this situation to the previous Conservative government’s policies, which he said “created an environment that was not attractive or profitable” for new landlords. He stressed the urgency of addressing the issue, stating: “It needs to be taken very seriously. We need anything that will encourage people back into the private rented sector.
“Ultimately, the UK needs tens of thousands, if not hundreds of thousands, of extra rental [homes] to manage the price growth and make sure it is tempered as much as possible in the medium term.”
Recent years have seen buy-to-let landlords deterred by various tax and policy changes. In the most recent Budget, former Chancellor Jeremy Hunt eliminated multiple dwellings relief, which provided stamp duty discounts for buyers acquiring multiple properties in one transaction. This followed the introduction of a 3% stamp duty surcharge on second homes in 2016. Additionally, the new government has committed to reinstating Rishi Sunak’s plans to ban no-fault evictions.
Gittins is not alone in his concerns. Charlie Bryant, CEO of Zoopla, told the Telegraph that tax increases, regulatory burdens and high mortgage rates have made private landlordship less appealing.
