Rental Housing Crisis Will Undermine Chancellor’s Growth Plans
The Government’s efforts to attract “global talent” to the UK will be undermined unless urgent action is taken to boost the supply of homes to rent.
That’s the warning by organisations representing institutional and individual landlords along with letting agents.
Speaking at the World Economic Forum in Davos earlier this year, the Chancellor spoke of wanting to attract the “highest skilled” people to the UK as part of her efforts to boost economic growth.
However, in a joint letter, the British Property Federation (BPF), the National Residential Landlords Association (NRLA) and Propertymark warn that this will be impossible unless the chronic shortage of homes to rent is addressed urgently.
According to data from Oxford University’s Migration Observatory, 42 per cent of the foreign-born population in the UK live in the private rented sector, compared to 16 per cent of those born in the UK. Among those born in the European Union, 52 per cent live in private rented accommodation.
Without sufficient rented housing, those the Government seeks to attract will struggle to find a place to live. This is supported by data from Savills which suggests that up to one million new homes for private rent will be needed by 2031 to accommodate growing demand.
The letter expresses concern about the impact the stamp duty hike set out in the Autumn Budget has had on the provision of rented housing. The head of the Institute for Fiscal Studies has warned it will lead to “fewer properties” being made available.
The Chief Executives of the BPF, NRLA and Propertymark said:
“We support the Government’s ambition to grow the economy and welcome international expertise to the UK. However, policy needs to back up the rhetoric.
“Without substantial support to boost the supply of new, high-quality homes to rent, the Chancellor’s efforts to attract global talent will fail.
“We urge the Government to engage with the sector to develop forward-thinking policies that provide the homes to rent the country desperately needs.”
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