That’s the warning from the Residential Landlords Association (RLA) after an investigation discovered there were areas of the UK where Airbnb accommodation accounted for one in every four property listings.
The study by the Guardian came just after research by ARLA Propertymark found nearly half a million properties could be left unavailable for longer-term rent because landlords were exiting the market in favour of short term lettings.
The RLA believes this shift has taken place because of the change in taxation for landlords. From April, mortgage interest relief is being cut completely – following a phasing out period – meaning many landlords will be worse off or find it difficult to make a profit.
Because the change does not apply to landlords with short-term lets, the RLA fears it will encourage more long-term landlords into that market.
This, combined with the 3% stamp duty surcharge on second homes along with other government policies which impact landlords, is likely to cause a drop in the supply of long-term rented homes at a time when demand for this type of housing is high, said the RLA.
David Smith, the RLA’s policy director, said: “Government policy is actively encouraging the growth of holiday homes at the expense of long-term homes to rent which many families need.
“This is completely counterproductive, making renting more expensive and undermining efforts to help tenants save for a house of their own.
“The Chancellor must use his Budget to give tenants a better deal by supporting good landlords to provide the homes to rent that they want to live in.”
You can find out more about the tax changes being enforced this year by reading our guide. Click here to read the full article.
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