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A housing group has said landlords must be given incentives if they are to make improvements in the private rented sector.
According to the Association of Residential Letting Agents (ARLA), the number of private properties available for rent has increased by 17% during the past 12 months, but the condition of thousands of these is sub-standard.
It has called on the Government to offer private landlords incentives, such as tax relief, to encourage them to carry out essential modernisation on the properties which are available to rent.
A survey found 61% of landlords claimed they would upgrade their properties in some way if immediate tax relief was available on the cost of the work.
Ian Potter, operations manager at ARLA, said: "The private rental sector is dominated by small landlords - just under three-quarters of all landlords are private individual or couples rather than companies.
"The costs of improving stock are often intimidating, especially when meeting decent homes standards and energy efficiency targets."
He said that the Rugg Review, which looked at the private rented sector, was a positive step by the Government as it recognised that rental housing needed to be improved.
However, ARLA say that there has been no indication as to when the improvements will be enforced.
The properties typically used as rental homes are between 51 and 100 years old and many are in poor condition, with a third of landlords saying when they bought their property it was in dire need of refurbishment.
But due to the economic downturn many landlords are finding it difficult to get the funding they need to invest in properties to carry out repairs and improve their overall condition.
A Communities and Local Government spokesman said: "Only last month we unveiled a major new package of proposals to drive up standards in the private rented sector.
"They would ensure tenants have the protection they deserve and decent landlords receive the support they need. We are now consulting on these proposals, we will welcome Arla's contribution."
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