Housing crisis deepens as landlords sell up – NRLA

Tenants across the UK are facing a worsening housing crisis as landlords continue to sell properties, exacerbating the already severe shortage of rental homes, the National Residential Landlords Association (NRLA) warns.

It points to data from Pegasus Insight which reveals that demand for private rented housing remains strong, particularly in the South East.

However, 19% of landlords sold properties in the past year, while only 8% purchased new ones.

Also, 41% of landlords plan to sell properties in the next 12 months, compared to just 6% who intend to buy.

This is in stark contrast to the research from Lomond today which states that the exodus of landlords from the PRS has been ‘exaggerated’.

‘Not enough homes to rent’

The NRLA’s chief executive, Ben Beadle, said: “Tenants the length and breadth of the country know that there are not enough homes to rent.

“Rather than seeking to tackle it, the Government is instead doubling down on policies that have caused the chasm between supply and demand to widen in the first place.

“Whilst landlords selling up might benefit a minority of tenants in a position to afford a home of their own, the vast majority will face a growing struggle to access rental homes.”

He added: “It’s time for a change of course. We need policies to support the provision of more decent quality homes for private rent alongside all other tenures.”

Demand for private rented housing

Nearly eight in 10 landlords (79%) reported strong demand for private rented housing in the third quarter of the year.

This demand was particularly high in the South East, where 84% of landlords experienced strong demand.

In contrast, the West Midlands had the lowest demand for private rented accommodation.

The NRLA warns that landlords selling properties could have severe consequences for tenants.

Currently, only one in eight renters can afford to buy a home in their area, according to Oxford Economics.

Stifle rental market supply

The recent Budget, with its increased stamp duty for first-time buyers and policies that stifle rental market supply, will further exacerbate this issue.

Also, higher-than-expected mortgage rates, as predicted by the Office for Budget Responsibility, will add to the financial strain on potential homebuyers.

The NRLA is also warning that tenants relying on housing benefits are particularly vulnerable.

A freeze on housing benefit support from next year will further limit their options in an already tight rental market, it says.