Calls for more rental property in London
A growing number of rental specialists in Britain believe that Prime Minister Gordon Brown’s government could be able to increase the supply of quality private sector residential rentals, if they provide landlords with the tools and incentives needed to expand their portfolios. It is believed that one of the best ways that the government might be able to go about this is to through a series of tax incentives and this follows calls from another organization, the Town and Country Planning Organization, for similar encouragement.
The rental market appears to be getting tight in parts of London, especially in the Hammersmith area. Some, however, may wonder why it is wise idea to increase the supply of properties when the rental market is only now recovering from an unbalance between supply and demand caused by the entry of so-called “accidental” landlords. The main reason may be the fact that there is more room for growth in the UK’s private rental sector than in many other European countries, where the buy-to-let industry is more developed. But a more compelling reason relates to social realities in the UK. Britons are holding off on marriage and there are also far more university students than before. Both of these factors contribute greatly to sustained rental demand. While a decade ago, many Britons would see rentals as a short-term option, some are now renting for an extended period of time, as this offers them the most mobility to look for jobs in other regions and does not leave them with a massive mortgage burden.
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