Tax breaks for buy-to-let investors would help stave off housing crisis
According to a report by social justice charity, the Joseph Rowntree Foundation (JRF), Landlords should be offered tax breaks to provide more homes, lower rents and longer tenancies. They say giving landlords a financial incentive could help a predicted 1.5 million young renters find somewhere to live because they will never afford to buy a property.
The report estimates around 500,000 young people will be forced to live with their parents until they are aged 30 or more, taking the total number of young people unable to afford to leave home to 3.7 million by 2020.
With more young people looking to rent, home hunters will have to compete for tenancies, with demand and short supply of properties likely to push up rents.
To counter the looming housing crisis, the report suggests:
- Tax breaks for landlords that will allow them to reduce rents and offer longer tenancies
- Specialist letting agencies to help young people search for a rented home
- The introduction of schemes to build more affordable homes
David Clapham, lead author of the report, said: “With 1.5 million more young people no longer able to become home-owners by 2020, it’s vital we take the opportunity to make renting work better. To do this we need strong political leadership that is willing to work with both landlords and tenants to make it more affordable and stable for ‘generation rent’.
“Young people are at a double disadvantage – it takes longer to raise enough for a deposit and their wages are generally lower. But there are simply not enough homes and those we do have cost too much to rent or buy. While more housing would help address this, it may not come quick enough for young people forced into renting in eight years’ time.”