MP Tim Farron raises concerns around rising PRS costs

Jake Carter

January 13, 2022

prs costs

Liberal Democrat MP Tim Farron has raised concerns surrounding the increasing costs in the private rented sector (PRS) during a government debate.

Farron said it is an inevitable outcome as we continue to see areas where tenant demand outstrips long-term rental supply.

He added that short-term lets impacting the PRS, as well as harming local tourism, due to the imbalance in some communities and the lack of permanent residents using local services in certain areas.

For example, one district was said to have seen a 32% rise in the number of holiday lets in the past 12 months, which were not new-builds but were previously available as homes.

Timothy Douglas, policy and campaigns manager of Propertymark, said: “It was reassuring to hear representations from politicians from all parties reiterating our concerns that in many parts of the country the balance of short term lets, and long-term private rented accommodation has tipped too far.

“It is therefore vital that policy makers understand that the short-term rental market is growing in attraction for many existing and new landlords given its tax and regulatory framework, risking the availability and affordability of private rented sector homes.

“During the debate, several references were made to the role of Stamp Duty Land Tax and the additional 3% surcharge on purchases of additional homes.

“However, it was disappointing that no-one took the opportunity to acknowledge that the additional three per cent is actually a barrier to investment for much needed homes in the private rented sector.

“The UK government need to urgently look at the tax loophole that permits owners to register for non-domestic business rates instead of Council Tax and to level the regulatory playing field so that short-term providers are subject to the same expectations as long-term providers in the private rented sector.”

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