Propertymark: Gove must do more to tackle PRS imbalance

Jessica Bird

January 14, 2022

Timothy Douglas propertymark

Timothy Douglas (pictured), policy and campaigns manager at Propertymark, has voiced his support for tax changes made by Secretary of State for Levelling Up Michael Gove in order to address empty second homes being marked as holiday lets.

Gove has introduced tax changes that look to close the loophole by which those with largely empty second homes marked them as holiday lets in order to receive tax breaks.

However, Douglas added that much more needs to be done to tackle the imbalance between short-term and holiday lets and long-term private rented housing.

He said: “In coastal and rural areas, the short-term rental market can be a far more attractive option for new and existing landlords due to the lack of regulation compared to the private rented sector which presents a real risk to the availability and affordability of homes.

“The additional 3% Stamp Duty Land Tax creates a further barrier to investment in much needed residential homes in the private market.”

Douglas said that in order to help balance the market, the government should create a “more level playing field,” with higher regulation and more support to boost the supply of rented homes in key areas.

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