Generation Rent has revealed a six-point wishlist in advance of the first Labour budget in 14 years.
In making the recommendations, the tenancy advocacy group said: “The Labour government was elected with a big commitment to improve renting and tackle unaffordable housing, and, compared with other tenures, renters were the most emphatic supporters of the party on election day.
“It’s therefore a significant moment and we have urged the chancellor to take action for renters.”
These six points are:
- increase investment in new social homes
- uprate Local Housing Allowances (LHA)
- new tax retirements for landlords
- overhaul of current property taxes
- give English councils more powers to set council tax on second homes
- ensure grants under the Renters’ Rights Bill benefit the tenant
The government has already made commitments to affordable housing, with it pre-announced that chancellor Rachel Reeves is allocating a further £500m to the affordable homes programme.
Generation Rent wants this expanded upon. With the additional £500m estimated to deliver an additional 5000 social homes, the group has argued 90,000 extra homes a year are needed.
LHA rates were increased in April 2024 but rises in rents mean these are already out of date, according to Generation Rent. Uprating these again would help avoid financial hardship the group has argued, and avoid further evictions.
From a tax perspective, Generation Rent also wants a fairer approach to be adopted towards landlords.
This would include requiring landlords to pay National Insurance contributions, with rental profits currently not subject to such taxes. In addition, Generation Rent wants capital gains taxes on property to be increased and match income tax rates.
Elsewhere, Generation Rent has called for an overhaul of property taxes, which it argues are “poorly designed and disadvantage people on lower incomes”.
As such, the group is arguing council tax and stamp duty should be replaced with an annual property tax based on a proportion of the property’s value.
Likewise, the tenant advocacy group also wants councils to be given more powers to set council tax rates on second homes. This, it argues, would free up more homes for locals.
Finally, with the Renters’ Rights Bill undergoing parliamentary procedure, Generation Rent want a clearer system in place for grants when upgrading properties’ energy efficiency ratings.
This, it argues, would give tenants a stronger reason to apply for grants and would make it easier for landlords to comply with new minimum EPC ratings being introduced.