2-3% rental inflation as new supply drops further

by Property118.com News Team

12:05 PM, 12th December 2019
About 12 months ago

2-3% rental inflation as new supply drops further

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2-3% rental inflation as new supply drops further

New figures showing a sharp drop in supply over the last year are a warning of a crisis in the private rental market

The latest Residential Market Survey by the Royal Institution for Chartered Surveyors for November shows a net balance of minus 29% of surveyors reporting a fall in landlord instructions which is twice the negative rating in November 2018.

With tenant demand continuing to increase, RICS predicts that this will lead to rent increases of around 2% over the next year and around 3% a year over the next five years.

David Smith, Policy Director for the RLA, commented:

“If the decline in the supply of new homes to rent continues to fall whilst demand is still rising, this is going to lead to a crisis in some areas as tenants desperately search for somewhere to live. This is all the result of increased taxation and other measures over the last three years and the result has been highly predictable as we said it would be.

“The new government needs to urgently address the problem and make changes in the forthcoming budget to relieve the pressure on landlords and encourage new investment to meet the demand.”


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Comments

Ian Narbeth

15:18 PM, 12th December 2019
About 12 months ago

I will make some predictions. The new Government, of whatever hew, will do the opposite of what David Smith advises. Section 21 will be abolished. Landlords will continue to be vilified. Tenants will be asked if they would like all sorts of goodies such as rent controls, longer tenancies and so on. Investment in the sector will appear to stay the same or even go up as institutions build blocks of flats for the yuppie market. However, small landlords will not invest in improving their houses and as s24 takes full effect, more will sell up.
Nobody will tell tenants the trade off for hurting landlords will be reduced choice of property, higher rents and many being unable to rent at all.
Those of us with strong nerves and the ability to cope with the regulations may profit (it's an ill wind ....) but it will be lose-lose for most.

Mick Roberts

12:17 PM, 14th December 2019
About 12 months ago

The crisis is already here in Nottingham cause of http://www.selectivelicensingtruth.co.uk
We got tenants bulging out of Premier Inn at £800pw.


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