The new government led by Liz Truss, which takes office tomorrow, must restore tax allowances for homeowners to get them back on the market, said Cluttons manager James Hyman.
Reacting to today’s news, Hyman said: “The new Prime Minister’s priority must be to ensure that interest rates do not soar out of control, as this, coupled with the crisis in the cost of life, will lead to a market collapse.
“To alleviate the housing shortage in the UK, the government must consider reinstating tax relief and incentives for private landlords to encourage them to return to the market.”
He explains: “The main reason why rents have risen so rapidly over the past two years is the lack of supply, which has been driven by the fact that so many private landlords have been forced out of the market as the government no longer makes it viable to be a private owner.
Earlier today, a Goodlord survey found that a majority of letting agents expect a number of their landlord clients to exit the market this year.
Hyman adds: “Furthermore, to help meet the country’s current housing supply needs, the new Prime Minister must tackle the massive post-pandemic consent bottleneck within local authorities. .”
Planning is a topic that comes up elsewhere. For example, a spokesperson for the Leeds Building Society comments: “There is no simple solution to the housing crisis facing our country, but building enough houses to meet the demand is undoubtedly the right starting point.
“That’s why we challenged Liz Truss and all the candidates vying to become Prime Minister to deliver on their commitments by building the 300,000 homes a year that our country desperately needs, and that the 2019 Conservative manifesto promised.
“With the economy on the brink of recession, we need to be clear that building homes is good for growth. By delivering on the manifesto pledge, the new PM would generate over £14billion in economic activity and would create 260,000 additional jobs.
The lender says it wants to see a long-term strategy for housing construction, “that will give confidence to the housing industry and will certainly not be solved by the uncertainty of stop-start reform and the revolving door of government ministers responsible for the file.”
And Propertymark chief executive Nathan Emerson also talks about housing supply, as well as energy efficiency, which he said were the top two issues in a recent online survey by the body.
“We congratulate Liz Truss on her successful election campaign and urge her to work with real estate professionals to find solutions to these major issues facing the industry,” Emerson said.
He continues: “It is not surprising that the increase in housing supply has exceeded our survey. Our latest market analysis reports show that for every rental property available, there are on average 11 applicants, while home buyers outnumber sellers by seven times. This creates affordability issues, especially in the private rental sector.
“We believe this gap can be closed through measures that bring back the tens of thousands of long-term empty properties and the introduction of targeted targets for new homes that are based on an identified need for each tenure across the country.”
And on energy efficiency: “Propertymark is a strong advocate of making homes more energy efficient as the best solution to lowering bills.
“However, it is unlikely that significant progress can be made until ministers better understand the current housing stock and then apply realistic targets based on individual property characteristics with sustained funding for owners.”