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James Gibbs and Paul Gillespie explain more...
CLG lobbies for PRS tax breaks
Date: 9th May 2012
The Communities and Local Government committee has recommended that government simplify tax and regulatory structures that apply to private landlords.
CLG has put forward proposals in an effort to create an environment in which small private landlords are encouraged to expand their portfolios and invest in new build housing.
It said investment by large financial institutions and pension funds offered a potential source of finance for new housing in the private rented sector.
However it acknowledges that many considered that the sector would continue to be dominated by smaller landlords.
Nigel Terrington, chief executive of Paragon, provided evidence to the committee on the importance of the private landlord.
He said that Paragon was broadly pleased with the recommendations in the report.
And he added: “That said there is not enough recognition of the essential role played by the private landlord and the contribution they make in providing homes for millions of people in the UK.”
Terrington said there was a great deal of effort which went into policy development around expanding the scale of corporate and institutional investment.
He however said: “Not enough thought has been given to how we expand and motivate the model which already works in terms of the private landlord.
“There is a need for a larger and more diverse private rented sector to accommodate the growing demand from tenants. Private landlords have demonstrated over many years their willingness to expand the supply of rented property.
“We need policy developments that work with private landlords, not ones that get in their way.”
Paul Gillespie, Founding Partner at multi award winning sales and lettings agents Gibbs Gillespie added: “The private rental sector now represents approaching 20% of the UK housing stock and is an important part of the housing mix of socially rented, privately rented and owner occupied property.
"It is important that Government policy reflects the importance of this market and encourages a sensible level of supply to meet tenant demand.”
For further media information contact Jo Ryan on 020 8869 9863.