Tax allowances for private landlords should be reduced if their homes fail to meet the decent homes standard, according to the Chartered Institute of Housing (CIH).
Analysis conducted by the institute found that 33% of privately rented homes would not meet the government's decency standards, which were introduced to raise standards in socially rented homes in 2000.
CIH chief executive Grainia Long said if the tax breaks available to private landlords increased and decreased with the quality of their properties, more landlords would invest in their homes.
Private landlords benefit from around £7bn of tax allowances a year for expenses, but they don't target or incentivise higher standards.If landlords who committed to a higher level of standards benefited from a more targeted allowance, while those who did not saw their allowances stay the same or even reduce, the government could encourage higher standards – without needing to find any extra money.
However the Residential Landlords Association warned the move could hamper the supply of privately rented homes and worsen standards. Director Mark Butterworth said:
While official figures show that tenant satisfaction rates are higher in the private rented sector than the social sector, we cannot be complacent about standards.
Boosting supply is the best way to improve standards and to do so we are calling on ministers to reform the tax system to better encourage landlords to invest in new homes to rent.
Should landlords of poor-quality homes receive less generous tax breaks, or would such a move decrease supply and worsen standards? Cast your vote below and let us know your thoughts in the comments section.