Industry body urges government to offer incentives to landlords amid soaring demand

An industry body is calling for incentives to support landlords as demand continues to outstrip supply.

Propertymark’s housing insight report reveals available rental stock contracted further, averaging 9.75 properties per member branch, exacerbating supply shortages.

Propertymark is now urging the government to support landlords and acknowledge the role they play in the housing market.

Many landlords are choosing to sell up and exit the market

A Propertymark letting agent in the North East claims the housing crisis is worsening due to landlords leaving the market.

They told the report: “I believe the rental market in the Northeast is facing a crisis due to the growing shortage of available rental properties.

“Many landlords are choosing to sell up and exit the market, creating a desperate situation for renters.”

Similarly, in London, letting agents report landlords are choosing to leave the market due to the Renters’ Rights Bill.

The agent told the report: “Demand for rental remains strong but, many landlords are  considering exiting the sector due to spiralling costs and the restrictions that the Renters’ Rights Bill will impose.”

According to the housing report, demand continues to outpace supply, with six applicants competing for each available property, reinforcing pressure on renters.

Lack of support for landlords to invest

Propertymark warns the government the housing crisis will only worsen due to a lack of investment in the private rented sector.

Nathan Emerson, chief executive of Propertymark, said: “In the lettings sector, there appears to be little fluctuation in outlook in the short to medium term, with demand continuing to significantly outstrip the supply of available rental properties.

“This trend could worsen, not only due to a lack of support for landlords to invest in the sector, ultimately pushing rent levels higher across many regions, but also because tenants might now choose to stay put for longer, given the uncertainty and difficulty in finding a new home.”

Phil Spencer, founder of MoveiQ, is urging the government to support landlords.

He said: “Seeing another dip in the number of privately rented homes available will likely not boost renters’ confidence. Wages have generally failed to keep pace with rent increases over the years in many regions, with the issues further worsened by a slowdown in property investment within the sector.

“It would help enormously if we could all see the promotion of a healthy mix of tenures, and appreciate the important role that good, law-abiding landlords play in housing the nation.”

He adds: “We now need to nurture and incentivise current and future investment to avoid further fuelling this ever-increasing gap in available homes to rent and the resulting growing demand from renters.”

Always an interesting time of year for the sales market

Elsewhere in the report, the residential sales market sees a lull during the summer break.

According to the report, the UK’s average house price stood at £290,395, while residential sales volumes were lower than in May last year, and buyer registrations averaged 74 per branch.

Mr Spencer says: “This is always an interesting time of year for the sales market, as good weather, holidays, and school breaks often act as distractions.

“Possibly due to increasing transactional taxes in some nations, alongside ongoing financial and economic pressures for many, there appears to be plenty of property for buyers to choose from.

“To facilitate an efficient sales process, it is therefore more important than ever for sellers to have realistic price expectations and to list their property accordingly.”

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