Industry body warns rental reforms could drive up rents and reduce supply
1 year ago | 4 comments
Demand surges as older landlords exit the private rented sector
12:01 AM, 14th March 2025, 1 year ago
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Demand continues to outstrip supply as older landlords leave the market, warns one industry body.
According to Propertymark’s Housing Insight report, demand continues to rise with new tenant registrations per member branch surging from 79 to 115 in 2025.
The industry body says without government support, many landlords will simply decide to sell up.
Pushing up rents even further
According to the report, the average number of applicants per member branch is around nine for each available property.
Nathan Emerson, the chief executive of Propertymark, warns that without government support, many landlords will be forced to exit the market, causing even more supply and demand issues.
He said: “For the private rental market, pressures remain, and the age-old story continues of demand levels increasing against a slowing backdrop of supply.
“We know that without government support for landlords to continue in the market or for future investors to enter, many may take their investment capability elsewhere or sell up altogether, worsening the ever-widening gap and ultimately pushing up rents even further.”
The report adds that 26% of agents have seen rents increase.
Older landlords currently systematically selling their properties
One member in the East Midlands said many older landlords are selling up.
The member said: “We have several older portfolio landlords who are currently systematically selling their properties.
“So far it’s mainly been as and when tenants give notice then they are selling rather than reletting, but I have recently had one landlord ask me to serve notice on all their tenants.”
Stamp duty changes
Mr Emerson said: “As widely expected, the sales market saw an uplift in activity due mainly to the Stamp Duty thresholds changing, requiring many homeowners completing from April onwards to pay more tax in England and Northern Ireland.
“It will be interesting to see how the dust settles within the sales market as we move closer to that deadline. Indeed, we are likely to witness this spike in activity tail off.
“However, people continue to adapt to market conditions, and for those who are factoring in this additional cost, their home move plans may remain unchanged.”
Tags:
demand outstrips supply, landlord market exit, landlord support, Property Market UK, Propertymark report, Rising Rents, Stamp Duty changes, supply and demand issues
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Landlords are optimistic for 2025 despite challenges
Member Since May 2015 - Comments: 2190 - Articles: 2
3:12 PM, 18th March 2025, About 1 year ago
Reply to the comment left by Disgrunteld Landlady at 18/03/2025 – 14:02
I like the Philippine model, you rent, and the rent collector calls once a week (it is largely a cash society). If you do not have the rent, you are given two hours to find the money or leave. There are few defaulters.
Member Since July 2013 - Comments: 154
10:26 AM, 21st March 2025, About 1 year ago
Reply to the comment left by Disgrunteld Landlady at 18/03/2025 – 14:02
Exactly the same in Thailand. Landlords and tenants get on really well because the tenant knows full well the result if they misbehave. The consequence is that there are hardly ever evictions and there is no homeless save for those who prefer a ‘life on the road’. We used to call them gentlemen of the road. And of course there is absolutely no government interference. If the house burns down, the tenant is told by the authorities that it was their fault for not installing smoke/fire alarms as they are adult and should have known better. We have gradually been offloading our modest portfolio in the UK, from a high (ish) of 11 units (one an 8 bed HMO) down to just 2. The limited proceeds have now been invested in new build properties here which rent for a far better profit than we ever made back in the UK. Oh, and we get to spend a couple of days a week on the beach. Just saying…….
Member Since May 2015 - Comments: 2190 - Articles: 2
10:45 AM, 21st March 2025, About 1 year ago
Reply to the comment left by philip allen at 21/03/2025 – 10:26Life is hard in Thailand!
Member Since July 2013 - Comments: 154
11:15 AM, 21st March 2025, About 1 year ago
Reply to the comment left by TheMaluka at 21/03/2025 – 10:45
Desperately so! (: