Investment in the UK Private Rented Sector – Treasury Consultation
Yesterday the Government published a new consultation entitled “Investment in the UK Private Rented Sector” to identify and assess the barriers to investment in the private rented sector. The document is published by the Treasury which limits the scope of both the consultation paper and any reform that may or may not be brought about as a result of the response to the consultation.
As this is prepared by the Treasury the focus is on the economic factors. The initial premise is that the downturn in the property market and the general economic downturn has resulted in the return on investment being too low. Landlords aren’t investing. The Government acknowledges that there is a demand for private rented sector housing and wants to establish whether the economic forces will restrain the supply preventing from meeting that demand.
Click on the link below to access the document and have a read yourself, or print it off and leave it in the downstairs loo.
Is it only me that thinks that there is a definite lack of ‘joined up thinking’. First there is the announcement that there will be a change in the Use Class Order requiring planning consent for the change of use of a dwelling house to a HMO. Second we are informed that is an alteration to the licensing regulations meaning local authorities can impose their own licensing criteria without recourse to the Secretary of State. Then the same Government acknowledges that the Private Rented Sector is important in providing housing to meet the increasing demand for housing across the Country but we need more PRS housing! It publishes a consultation paper based on assessing the economic drivers that prevent private landlords from investing.
What about the fact that we landlords have to jump through more and more hurdles, backwards and with the property market on the downturn yes we do ask ourselves – IS IT WORTH IT!!!
