11:36 AM, 10th February 2023, About 8 months ago 3
The number of available rental properties fell by 7.8% last year, compared to 2021, and by more than 25% since 2019 as growing numbers of fed-up landlords leave the private rented sector (PRS), research reveals.
The survey from TwentyEA points to tax, regulatory and cost environments ‘becoming less enticing’ for the exodus.
And the lack of homes to rent means that tenants are ‘undoubtedly deferring decisions’ to buy a home of their own as potential buyers struggle with higher house prices, inflation and interest rates.
‘Higher interest rates and inflation may be passed on by landlords’
Stuart Ducker, TwentyEA’s strategic solutions director, said: “This trend is likely to continue as higher interest rates and inflation may be passed on by landlords whilst supply constraints and demand pressures continue to apply.
“Our research shows that the lack of rental properties available in the market in 2022 in comparison with 2021.
“Aside from inner London, all regions sit between 1.5- and 3-months stock. The situation has deteriorated considerably in London, Scotland and Northern Ireland.”
He adds: “Any major improvement in rental stock availability remains in question with interest rates rising, a squeeze on the availability of mortgages, particularly buy-to-let, and the fiscal and legislative changes from prior to the pandemic that is less enticing for landlords.”
The lack of rental stock has seen rents soar to £1,652 at the end of 2022 – an increase of £200 since 2021 and almost £300 since 2019.
Elsewhere numbers were generally low apart from Peterborough and the South West which saw some modest growth.