According to a study by the Royal Institution of Chartered Surveyors (RICS), a crisis is facing the UK as more households will be renting in the future.
The study reveals that 1.8 million households will opt to rent by the year 2025, rather than buying their own home. The surveyors’ professional body has stated that a building programme which will focus on housing provision for tenants is required to avert a crisis in the future.
The government has been called on by RICS to provide tax incentives to encourage investment and building in the sector. In 2001, the number of households in the UK renting accommodation was 2.3 million, but this figure has more than doubled to 5.4 million in 2014.
The report by RICS states that investment by landlords in rental property has slowed down due to the stamp duty rules introduced in April this year. Next year, landlords will also face changes to the rules regarding the deduction of mortgage interest from their income tax bill.
However, one suggestion from RICS is to overturn the stamp duty changes, which may impact on first time buyers as they face competition from buy-to-let investors when buying a home. The policy manager of Generation Rent, Dan Wilson Craw, says that stamp duty increases were a positive move, as it had raised £424 million during the initial three months of being implemented, funding which could be used to build more houses.
Mortgage advisers take a CeMAP course to ensure that they are able to assist those on lower income levels who are searching for a mortgage.