RICS publishes Residential Policy Report
The first draft of the RICS Residential Policy was publishedon 21 May 2012 following consultation with its members across all parts of theresidential property sector. A copy of the policy can be obtained here.
The policy highlights the urgent need to deal with the UK’shousing crisis and is a welcome attempt to promote the delivery of asustainable residential sector.
The RICS urges the Government to address variousdeficiencies of the current system from the lack of mortgage finance to thecumbersome regulatory framework in the lettings market. It makes numerousrecommendations including reducing VAT to 5% for repairs maintenance, lettingsand management; promoting the use of Assured Shorthold Tenancies for periodslonger than 12 months and linking rent increases to RPI to maximise income forinvestors (a model more widely used for Company Lets); reforming the currentstamp duty system and providing better and further information to consumers onacquisitions of residential property.
It is intended that the Policy will evolve with constantinput from various members of the RICS and a revised version of the Policy isto be published in early 2013. This is an opportunity for other members andprofessionals in the residential sector to share their experiences andcontribute to the evolution of the policy and bring the residential sector tothe forefront of national debate.
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