Tax breaks ‘could boost rental market’
A thinktank has called for tax breaks for landlords who provide lower-rent, longer-term tenancies for young people, to avert what it describes as a “homelessness disaster”.
The Joseph Rowntree Foundation believes that 1.5 million people between the ages of 18 and 30 will be priced out of buying their own home within eight years, which will see the rental market flooded with potential tenants.
Calculations suggest that 81,000 under-25s will be homeless, with a further half a million forced to live with their parents until their mid-30s.
The foundation indicated that tax breaks, like those seen overseas, have been successful in encouraging landlords to offer cheaper rents and more stable tenancy terms.
David Clapham, the author of the report, said it is vital to make the rental system work better, particularly with the looming prospect of 1.5 million homeless young people.
“To do this we need strong political leadership that is willing to work with both landlords and tenants to make it more affordable and stable for ‘generation rent’,” he explained.
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