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OPINION

In defence of landlords

In defence of landlords
April 1, 2016
In defence of landlords

Why do buy-to-let landlords find themselves in the firing line of a concerted policy push to make the asset class so unattractive? One reason is the government's desire to shift the balance of the housing market back in favour of first-time buyers, with demand from private landlords frequently blamed for driving up house prices. This link has not been proven – lending to owner-occupiers still dwarfs buy-to-let lending, and the ratio has barely shifted over the last decade. Yet the persistent stereotype of the rapacious and unresponsive landlord makes them a soft target for Treasury tax raids – few will shed any tears over policies that leave landlords out of pocket.

Statistics do not support the view of landlords as heirs to Rising Damp’s Rigsby – the last Private Landlords Survey suggests most homes are of a decent standard, and management of tenancies is conducted in a professional manner. More often than not, research suggests, it is tenants who are the source of trouble – according to the National Landlord Association a third of landlords faced rent arrears in 2014. In fact, the law has shifted very much in favour of the tenant in recent years – the onus is now very much on landlords to offer safe properties, and getting money out of bad tenants or evicting them is a painful process. The Deposit Protection Scheme – used by the vast bulk of private landlords – protects tenants more than landlords.

Perhaps it is time for someone to restore some balance to the debate and stand up for the landlords and the social service they provide, because, whether you believe in the great British home owning democracy or not, there is always a need for rental properties. People move around for work, get divorced, or are new to the workforce and can’t afford to buy yet – just a few of the many reasons why people rent. The Council of Mortgage Lenders pointed out this week that a thriving private rented sector is crucial given the demographic shifts taking place in the UK – changes for which landlords can hardly be blamed. And it was Thatcher’s vision of homeownership for all – now echoed by George Osborne - that left us woefully short of much-needed social housing stock and the incentives to build more of it.