City A.M. editor calls for more landlords

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In a September 2016 article, Tracey Boles, news editor of City A.M., came out in support of private landlords and stated that Britain needs more landlords.

She says that one in five houses is privately rented. Boles recognises that landlords are criticised for fuelling the rise in house prices and charging too much rent, but she blames market forces for this rather than landlords.

The recent rise in stamp duty and a cap on mortgage interest rates may have discouraged some landlords from investing in buy-to-let properties. Boles urge the government to “stop tinkering with the buy-to-let tax regime” and says that to meet the demand of population growth and the shortage of rented accommodation, there needs to be more landlords, not fewer.

Also in September 2016, The Financial Times reported that many buy-to-let commercial mortgages cost 8% less over the past six months when compared to last year. This is one reason why many buy-to-let landlords have not exited the market.

When compared to savings interest rates, the potential returns on rented housing is still high. Marc Da Silva, writing in Estate Agent Today in September 2016, advises:

“Would you switch a property producing say at least a 4% gross rental yield and offering good prospects for future capital growth for a savings account generating less than 0.5% gross a year? No, is almost certainly your answer, and that should also be the response from many of your landlord clients contemplating the idea of selling up.”

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