private rental sector are going to need changes in the tax system to incentivise investment in their buy-to-let by landlords. It seems that I'm not the only one that thinks this way. The Rowntree Foundation have just issued their report Housing Options and Solutions for Young People in 2020. It concludes that young people are the ones that are suffering from the current high cost of housing and lack of mortgages.
One of their suggestions to solve the emerging problem is smarter incentives for landlords including tax breaks.
Kathleen Kelly of the Rowntree Foundation comments:
“Our badly functioning housing system will see those on the lowest incomes really struggling to compete in the competitive rental market of 2020.
“Renting is likely to be the only game in town and young people are facing fierce competition to secure a home in what is an already diminished supply of housing.
“With 400,000 vulnerable young people, including families, on the bottom rung of a three-tier private renting system we need to avoid turning a housing crisis into a homelessness disaster.”
There is no doubt that it's 'tough times' if you are young and this especially applies to securing housing. It is nice to see that the Foundation are talking about landlords and buy-to-let as being part of the solution not just the problem.
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