ASSOCIATION OF RESIDENTIAL LETTING AGENTS The Private Rented Sector in 2025 David Cox, ARLA Managing Director

Rental prices in 2025: Rents will increase: – 2015 = £132pw – 2025 = £164pw – c.25% increase Supply will not meet demand: – 4x as many households as houses – Housing crisis will continue Depoliticise housing: – Sustained housebuilding programme – Regulatory certainty – Institutional Investors

The Landscape to 2020: No substantive change: – Tinkering around the edges – Lots of little changes Will this solve the problem? – Under resourced and over worked enforcing bodies – Housing Bill changes may go some way Letting agent regulation: – Highly unlikely with current Government

The Corbyn Effect: Election pledge revamp: – Mandatory 3 Year tenancies – Capping Rents – Ban on agency fees to tenants Leadership election policies: – Security of tenure – Strict rent control – Rents linked to earnings – Landlord regulation – Council house building programme

Landlord Licensing: Wales and Scotland: – Existed in Scotland since 2006 – In force in Wales soon – Influx of discretionary licensing A National Register of Landlords: – A bureaucratic nightmare; – Or a consistent approach? London Rental Standard: – This model can work – Make it mandatory

Longer Term Tenancies: Tenancy Reform: – Will 3-year contracts be the norm? – Does Section 21 have a future? Wales and Scotland: – Complete overhaul of Tenancy Law – The removal of Section 21 A European Model? – Should we look to Germany? – France’s eviction laws – Lisbon: Crippled by rent control

Property Conditions & Rent Control: What is the priority: – Good quality homes – Or cheap properties Market Economics: – House prices are unlikely to reduce – Higher standards increase costs – Rent Control reduces income Learn the lessons of the past: – Or history will repeat itself!

Tax Changes: Autumn Statement 2014: – SDLT Changes Finance Bill 2015: – Mortgage Interest Relief – Wear and Tear Allowance Changes to Buy-to-Let – Linked BTL to earnings? Future Tax Changes: – Capital Gains Tax Relief – Taper Relief – Treat landlords as businesses

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For more Information: Association of Residential Letting Agents (ARLA) Arbon House 6 Tournament Court Edgehill Drive Warwick CV34 6LG