Government hints at concessions for institutional landlords

Permalink: Government hints at concessions for institutional landlords
by Gill Montia

The Government has published a consultation document entitled “Investment in the UK Private Rented Sector” which indicates that stamp duty concessions could be introduced to encourage institutional investors to become landlords.

Ministers see private rental accommodation as playing “a critical role within the housing system” and are also looking at the possibility of using real estate investment trusts (currently the domain of commercial property investors) to encourage investment by big players.

Aviva and Legal & General are already understood to be interested in expanding into the private rented sector and the Homes and Communities Agency is known to be seeking out other institutional investors for large-scale projects.

Meanwhile, the Association of Residential Letting Agents has welcomed the consultation.

Spokesman, Ian Potter, comments: “We have long been campaigning for a change in stamp duty as it has a prohibitive impact on the private rented sector - so we are pleased that the government is finally taking heed of our recommendations.”

He adds: “A change to the structure of stamp duty would encourage vital investment into bulk portfolios - helping a part of the housing sector that is going to be pivotal to that sector’s recovery.”