A more efficient eviction process would encourage further investment in the buy-to-let (BTL) sector, as 64% of landlords cited in Pegasus Insight’s latest research.
Lower taxes followed closely with 61% of all landlords identifying a reduction in capital gains tax (CGT), while 61% selected the reintroduction of tax relief on mortgage interest payments.
In addition, 60% cited the removal of the 3% stamp duty surcharge as key to attracting more investment.
A drop in mortgage interest rates below 4% was identified by 59% of respondents, while 52% would be encouraged by more stability and predictability in regulation.
These numbers were closely mirrored by landlords looking to sell up in the next 12 months, but for this group the importance of a more efficient eviction process was even more paramount, at 71%.
A reduction in house prices was not seen as a very influential factor in encouraging investment, with just 16% of all landlords identifying this as important.
Pegasus Insight director Bethan Cooke says: “The fact that a larger proportion of landlords point to a more efficient evictions process as a greater spur to investment than a lower tax regime demonstrates how worried they are about the removal of Section 21 (no fault evictions) in the Renters’ Rights Bill, which the government has confirmed it will introduce within the next year.”
“It is no secret that there is a massive backlog in processing evictions through the legal system, and industry bodies have warned that banning Section 21 could overwhelm the courts and prove the final nail in the coffin for some landlords.”
“Our research demonstrates that, whatever form the new bill takes, it must be considered carefully to take into account landlords’ concerns as well as tenants’, to prevent a decline in rental property numbers, and an accompanying rise in rents.”
“When it comes to taxes, these results confirm that, if the government wants to encourage more investment in the private rented sector which plays a key role in providing homes for almost 20% of UK households, it would do well to consider reviewing the punitive tax regime which has been imposed on landlords in recent years, rather than increasing CGT or tightening the screw on limited company landlords, which many fear.”
