Reform Bill Will Push More Landlords Into Short-Let Market, Experts Say – LandlordZONE

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Leading figures on both sides of the private rental industry have agreed that the Tenant Reform Bill, along with other government changes, including tax relief, are propelling landlords into the short-term rental market.

The comments were made during a debate chaired by the former Prime Minister of Northern Ireland. Arlene Foster (main photo, center) among real estate investors Abdul-Qawiyy Kareem (lead photo, right) and Freddie Poser, executive director of the housing campaign group Priceless (left).

Foster, who has launched a new career presenting for the GB News television channel, noted that the Tenant Law (Reform) as it was launched last week in Parliament, it has divided opinion between landlords and tenants.

Although Kareem and Poser represent opposite sides of the housing reform debate, they both agreed that the supply shortage within the sector has been created by government policies, and that one result of this has been a move toward low-rental rentals. short term vacations away from long term rentals. traditional landlord term.

Poser said the Tenants (Reform) Bill is not the right direction to go, and building more housing is the only solution.

Force

“What gives landlords so much power is that renters often have very few options within the local market,” he said.

Kareem argued, as many pundits including the NRLA’s Paul Shamplina and Ben Beadle have done recently, that the tsunami of additional regulation about to hit homeowners once the bill wins royal assent is likely to reduce, do not increase, the offer.

Those owners, as already seen, are likely to move to areas where regulation and taxes are lower, namely the short-term rental or ‘vacation rental’ market created by platforms such as Airbnb.

“Because traditional owners are unable to claim interest on their mortgages against taxes following the 2015 ‘Section 24’ changes, many are looking to short-term rental markets such as serviced accommodation and vacation rentals,” he said. Kareem.

“It seems like the government is trying to drive a wedge between landlords and the traditional rental market, when it should be working with them to increase supply.”

Read: Complete guide to upcomging legislation.