Propertymark 2023 Spring Budget representation
Propertymark has outlined three core themes to drive the housing sector forward and has called on the UK Government to take action accordingly.
These themes include improving the welfare system for vulnerable and low-waged tenants, learning from the Green Homes Grant to support energy efficiency, and increasing the housing supply by repealing Section 24 and reintroducing Mortgage Interest Relief and other tax deductibles for landlords.
Improving welfare for vulnerable and low-waged tenants
Due to the cost-of-living crisis, poverty rates have risen, leading to an increased risk of homelessness. Propertymark advocates for pegging Local Housing Allowance to the 50th percentile to provide better support for those in need.
Additionally, Propertymark calls for the cessation of the Shared Accommodation Rate (SAR), which places a cap on housing assistance for single private renters under 35. Converting the Universal Credit Advance into a grant at the beginning of a claim is also suggested to reduce debt for Universal Credit recipients.
Learning from the Green Homes Grant
The UK Government's Green Homes Grant aimed to provide support for landlords and homeowners to decarbonise their properties. However, bureaucratic issues and inefficiencies hindered its success. Propertymark emphasises the importance of learning from this experience and providing better incentives for landlords and homeowners to achieve energy efficiency.
Increasing the housing supply
The private rented sector faces a significant challenge as demand surpasses supply. Section 24 and the phasing out of Mortgage Interest Relief have led to some landlords exiting the market. Propertymark urges the UK Government to adopt more sustainable tax measures for landlords, including reintroducing Mortgage Interest Relief, estimated to cost around £1 billion. This measure could lead to increased housing supply, reduced rents, and a medium-term commitment to reducing the £30 billion annual expenditure on housing benefits.
