5 Apr

Could reforms mean more houses to rent in London?

Could reforms mean more houses to rent in London?

Housing tax reforms announced by the government as part of last month's Budget could lead to the creation of more property to rent in London.

According to the Residential Landlords Association (RLA), the measures are a "positive move" and could help to encourage investment in houses and flats to let in London.

Bulk purchases of residential properties will see landlords pay stamp duty determined by the mean value of the affordable homes purchased, while some barriers to Real Estate Investment Trusts (REITs) will be removed.

Mark Butterworth, director of the Residential Landlords Association, says the reforms will remove disincentives to investment.

"It is a very positive move from the government and shows that they have been listening to points being made to them.

"It was a very unfair tax on rented property."

Mr Butterworth added if 2011 also brings more lending from buy-to-let brokers, investment in the private rented sector will increase.

More property to rent in London could ease high demand in areas such as the W1 district.

According to Knight Frank, new development and newly build apartments to rent in London W1 are proving popular with tenants.ADNFCR-1222-ID-800488245-ADNFCR

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