Savills warns of private rented sector emergency

While Foxtons blames sliding rents in the capital for a 3% fall in lettings revenue last year (that was actually the good news), Savills warns of a potential private rented sector emergency, sending rents skyward as as many as 75% of landlords sell up in the face of new legislation cutting mortgage interest tax relief. Another survey of 1,000 landlords reveals an almost equal split between those planning on raising rents and those who believe rents are already stretching tenant affordability. Presumably, if they can’t balance the books after 2020, when mortgage interest tax relief will have dropped from 75% to 20%, they’ll be looking to sell up. Currently a third of London households live in private rented accommodation. More here.