Editor's note: This brief was summarised by The Property AI Team from a report by Letting Agent Today. Read the original article for full details.
Budget Could Shrink Private Rental Sector, Warns Agency Boss
An agency boss has warned that more landlords could be forced out of the private rental sector by tomorrow's Budget. Sam Humphreys, head of mergers and acquisitions at Dwelly, says the Chancellor needs to recognise that property investment is ultimately a commercial decision.
Humphreys, described as the man behind a swathe of recent acquisitions of small agencies, said landlords will continue to assess whether the returns available justify the costs and risks of ownership. His warning centres on the prospect that more landlords could exit the sector as a result of the Budget.
According to the report, Humphreys believes Chancellor John Healey must recognise the commercial nature of property investment. For letting agents and inventory clerks, the implication is a potentially smaller private rental sector, with fewer landlords operating in the market.
The source does not set out specific Budget measures or quantify how many landlords might leave the sector. No figures, percentages or sums are cited.
For letting agents, the warning points to a possible further contraction in the number of landlords they serve, following recent consolidation among small agencies. Inventory clerks would likewise be affected by any reduction in the size of the private rental sector, given the link between landlord numbers and the volume of tenancy-related work.
The report includes no further comment from Humphreys beyond the points above, and no response from the Chancellor or the Treasury.
Source: Letting Agent Today