Call for government to help landlords and tenants

Almost six in 10 landlords are still seeing strong demand for homes to rent, the National Residential Landlords Association (NRLA) is warning.

And while there’s not a queue outside every landlord’s front door, it says that the figures should give ministers pause before adding fresh costs to the sector.

The survey shows that investors in the South East are reporting a different market from those in Wales.

It found that 58% of NRLA members said demand for homes to rent was either ‘very’ or ‘quite’ strong.

The highest levels were recorded in Wales and the North East, where 74% of landlords reported strong demand.

However, the South East and West Midlands recorded the lowest levels, with 51% of landlords in each area reporting strong demand.

Ministers should focus

The NRLA’s chief executive, Ben Beadle, said: “Despite some data showing rental housing supply increasing, the reality is that it is still not enough to meet tenant demand.

“Long waits for social housing coupled with the high cost of homeownership means the private rented sector will remain crucial for many people trying to find a place to live.

“Against this backdrop, it makes no sense for the government to increase taxes on rental housing when renters already face limited choice in many parts of the country.”

He added: “Ministers should be focused on encouraging responsible landlords to stay in the market and invest in good quality homes to rent.

“Anything that undermines confidence risks weakening supply, driving up rents and making it harder for those struggling most with cost-of-living pressures to find the homes they need.”

Landlord confidence pressures

The NRLA’s research also points to continuing pressure on landlord confidence.

Three times more landlords said they had sold property than bought property over the past year.

In total, 21% said they had sold a property, while 7% reported purchasing property during the period covered by the research.

The figures come as the government prepares to increase income tax on rent income from next year.

The NRLA says this is despite the housing minister acknowledging recently that previous tax rises have been a key factor in landlords selling homes that had been available to rent.