![](https://cdn.prod.website-files.com/63bec6da54f081eb192e7e3b/6470b9b56b25b30b3bfafb53_Group%2014449.png)
![](https://cdn.prod.website-files.com/63bec6da54f081eb192e7e3b/6470b9b56b25b30b3bfafb55_Group%2014448.png)
Reducing red tape for landlords would boost the supply of private rental properties, curb rent increases and create better quality housing for tenants, according to lenders’ trade body UK Finance.
The organisation believes the government should streamline some of the mandatory requirements for landlords by consolidating and recording key information on a digital database for landlords, tenants, and councils which mortgage lenders could also access.
This would reduce accidental non compliance by landlords and improve the government’s oversight of the sector.
Its new report on assessing the housing market suggests that if mortgage lenders had direct access to the database, they could provide an extra layer of enforcement by denying mortgage finance to unfit landlords, while potentially rewarding compliant ones.
UK Finance says Local Housing Allowance should also be reviewed regularly to ensure it provides the right level of support to lower-income households in the private rented sector.
The report explains that the main factor behind high rents is the general shortage of housing supply in the UK, resulting in inflated property prices which mean that landlords charge higher rents to cover costs and make a return. Minor fluctuations in landlords’ expenses could cause them to operate at a loss while selling properties only further shrinks the PRS.
“An across the board approach will be needed to help the market deliver the homes we need in the long term,” it adds.
“Measures to address the provision and use of UK housing are therefore essential to restore sustainable levels of affordability. However, given that it can take decades for such measures to bear fruit, policies to help first time buyers in the meantime are also important. Similarly, ensuring good outcomes for landlords and tenants in the private and social rental sectors is important given the significant role they play.”
Tags:
Comments