Ryan Etchells, chief commercial officer at Together, has flagged red lights. He is horrified at what has happened to the state of the private rental sector in Great Britain. In all of the above discussions, Siddiqi has been at the forefront of arguing that immediate reforms to property taxation are necessary. He thinks these reforms are key to strengthening the U.K. economy. These conversations center around how these types of reforms might impact the property market, and by extension the broader rental market.
Etchells stressed that the private rental sector is “hugely” important in the U.K. He especially emphasized its importance to the availability of housing. Without appropriate support and reforms, he warned the nascent sector could risk stalling. This standstill would cause immediate and lasting harm to millions of renters—and small, mom-and-pop landlords.
The proposed reforms aim to address existing issues within property taxation that many experts argue hinder investment in rental properties. Etchells adds that these shifts are very pro-growth, in the sense that they will further incentivize expansion of the sector, attracting more landlords to the space. He claimed that this wave of investment is needed. It will help address escalating demand for rental housing, especially in cities that are experiencing a crisis of unmet housing needs.
Etchells touched on how these reforms are affecting the U.K. economy at large. A healthy private rental sector is critical to a stable economy. In addition, it creates thousands of units of affordable housing that help improve job creation index and increase consumer spending in the area. He had previously written that ignoring this type of housing would just put more pressure on public dollars and the public housing sector.
Beyond just the economic argument, the debate showcased the effect on the property industry in general. An equally optimistic scenario involves enacting a tax environment more favorable to landlords that would allow them to provide better conditions for tenants in return. Increased investment might result in better-maintained properties and more competitive rental prices, ultimately benefiting those who rely on renting as their housing solution.
The need for a robust private rental sector is particularly pressing given the changing dynamics of homeownership in the U.K. With rising property prices making homeownership unattainable for many, Etchells stressed that an effective rental market is crucial for ensuring that people have access to quality housing options.