HomeLet and Let Alliance’s Chief Executive Officer, Andy Halstead, has called for less “government grandstanding” and more direct action to recognise landlords’ rental income as business income in a bid to ease the mounting pressure on all stakeholders within the private rented sector.
Halstead said: “Rent remains high, demand is strong, and supply remains limited. These indicators do not look like moving significantly for the foreseeable future.
“Professional letting agents have the dual challenge of delivering acceptable yields to their landlord customers and delivering sustainable profits for their businesses.
“Continued government grandstanding and indecision are making life difficult for all stakeholders in the private rental sector.
“Until landlords’ rental income is recognised as business income rather than earned income for tax purposes, the stress on individual private landlords and their tenants is likely to continue.
“It has never been more important for landlords to benefit from the services of professional letting agents, who take the steps to mitigate the risks that individuals face when renting an investment property.”
Halstead’s comments come off the back of the latest HomeLet Rental Index.
For the month of March, the data revealed that UK rents rose by +0.9% on average compared to the previous month.
The North East and Yorkshire and the Humber witnessed the biggest month-on-month increases at +2.1% and +2% respectively. That equates to an extra £14pcm and £17pcm.
Commenting on the data, Halstead said: “Although some areas of the UK have witnessed a marginal decrease in rental prices since February, the vast majority of regions have experienced yet another price increase in the space of a month.
“That means that, on average, tenants are paying an extra £11 a month compared to February alone.
“That might not sound like much but when you consider that rental prices are now +7.52% higher than they were in March 2023, every subsequent monthly increase puts added pressure on tenants’ budgets.
“There is a very simple solution to this situation and that is to ensure landlords are taxed fairly.”
