The Residential Landlords Association (RLA) has moved to defend the private rental sector, in the aftermath of a scathing report from the Resolution Foundation.
This report analysed the latest housing trends in the UK and concluded that the private rental sector is not fit for purpose. According to the Resolution Foundation, private sector tenants are much more likely to face insecurities as a result of shorter-term tenancy agreements.
In response to the report, the RLA said that the sector is certainly not in need of a radical overhaul. Instead, the RLA believes that the private rental sector provides a vital service to an ever-growing number of tenants.
The most recent English Housing Survey revealed that private sector tenants spend an average of four years in their current rental property. This is a slight rise from the 3.7 years recorded five years ago.
What’s more, the survey found that private sector tenants are more satisfied with their accommodation than those in the social rented sector.
Rather than a substantial overhaul, the one change that the RLA feels is necessary for the sector is the way that buy-to-let landlords are currently taxed. The RLA warns that recent changes implemented by the Government on mortgage interest tax relief for landlords will see investors passing on these further costs to their tenants.
Alan Ward, chairman of the Residential Landlords Association, noted, ‘the evidence shows that tenants in the private rented sector are staying in their homes for longer. No landlord ever wants to lose a well behaved tenant who pays their rent on time.’
Alterations to mortgage interest tax relief for buy-to-let landlords are scheduled to come into force in 2017.