Buy-to-let competition is high in the UK among tenants, and Location Location Location’s Phil Spencer has set out the positives for landlords and investors in the sector right now.
TV personality Phil Spencer spoke to attendees at the Ideal Homes Show recently, where he explained his concerns for the private rental market and why he believes the rhetoric should change around landlords and property investors to ultimately benefit tenants and the housing market at large.
While homeownership is still a goal for millions of people in the UK, the private rented sector provides crucial accommodation to those who are unable to step onto the property ladder at present, or choose to rent for other reasons such as flexibility.
Landlords, therefore, play a key role, but in Spencer’s presentation at the event, he described the ‘vicious circle’ of the government essentially disincentivising property investors and landlords, which then leads to a worse deal for tenants – as well as greater competition in the market, which pushes rents up.
Lack of choice for tenants
Describing the Catch-22 situation in the market for landlords in an interview with the Metro, Spencer said: “I’m trying to get people to appreciate is that what is bad for landlords – which is that the tax rules have changed and buy-to-let is not generally an attractive investment – but the changes make it hard to make money which means there are less landlords.
“Existing landlords are selling up, and new landlords aren’t coming into the market. It’s a vicious circle and I see that as a real worry for society.”
There have been many measures and indices recently demonstrating the stock shortage in the rental sector, which is more prominent in some locations than others. With competition high for each property that comes onto the market, some tenants are finding themselves in bidding wars to secure a home.
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