The Association of Residential Letting Agents (ARLA) has called for the removal of ''prohibitive barriers'' to rental investment in their latest report.

In their publication, ARLA have stipulated that growth of the Private Rented Sector (PRS) should not be stifled, commenting that the PRS should be an important factor in any government's future housing plans.

Over half of ARLA members described expansion of the PRS as being key to expanding the housing sector in the post recession period and urged the government to harness this growth further.

At present, it is reported that 750,000 homes in the PRS are sub-standard - approximately equating to 25 per cent of rented accommodation. To improve this figure, ARLA have lobbied the government to ''promulgate a business-focused approach'' to the rented sector and to further study ''prohibitive barriers to further investment'' like the Stamp Duty.

Other policy changes promoted by ARLA include removing VAT on the purchase of labour and materials to renovate older homes, introducing initiatives to promote the improvement of older housing and encouraging government to rethink the current stamp duty system.

Operations manager at ARLA, Ian Potter, commented that landlords should be treated akin to small businesses, as they can provide well maintained and managed property onto a rental market that has seen a dramatic increase in demand during 2010. Potter says: ''The government must devise incentives to facilitate the growth and improvement of property portfolios... Our agents would like to see changes made to the tax regime to allow landlords to see their portfolios as businesses, rather than just investments.''

From flats to rent in Birmingham to property in Warwick, the rental sector is under increased demand and as such, ARLA argue that more must be done to ensure that the sector continues to grow and provide good quality homes.

Following the ARLA report, the House of Commons Communities Committee stated that work on the private rental sector was ''quietly downgraded and inadequately funded.''

Dr Phyllis Starkey, chairman of the committee commented that ''poor housing imposes high costs on the social fabric of our communities, never mind the health and education systems. The next government must commit itself to a programme of measures which will keep the decency of all accommodation well up the political agenda.''

It is hoped that both ARLA and the House of Commons Communities Committee comments will bring the PRS sector higher up the agenda, akin to sustainable developments and social housing projects.