Mismatch between supply and demand

Mismatch between supply and demand

15:00 PM, 26th November 2021, About 2 months ago 2

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Demand for private rental housing is at an all-time high, according to new research being published by the National Residential Landlords Association.

 A survey of private landlords across England and Wales, conducted in partnership with the research consultancy BVA/BDRC, found that 57% confirmed that demand for homes to rent had increased in the third quarter of 2021 – up from 39% in the second quarter of the year.

At the onset of the first COVID lockdown in the second quarter of 2020, just 14% of landlords reported tenant demand having increased.

In a sign of recovery in the market, landlords operating in London have seen a significant uptick in demand compared to the levels reported throughout the pandemic as workers returned to the capital.

68% of landlords operating in outer London reported demand having increased, up from 25% in the third quarter of 2020. In central London, 54% reported increased demand, up from 16% at the same time last year.

Elsewhere, landlords operating in the South West reported the strongest demand, with 79% saying that demand had increased in the third quarter of the year. This was followed by 74% in the South East (excluding London), 73% in Wales and 71% in the West Midlands.

Despite the booming demand, the same proportion of landlords plan to reduce the number of properties they rent out as planned to increase them at 19%.

It comes as the Royal Institution of Chartered Surveyors has warned of rents increasing as a result of the “mismatch between supply and demand.”

Ben Beadle, Chief Executive of the National Residential Landlords Association, said:

“As demand picks up following lockdown measures, we need a stimulus to support responsible landlords to provide the homes to rent we vitally need. Without this, it will ultimately be tenants that suffer as a result of less choice, higher rents and the resulting difficulties they will encounter when looking to become homeowners”.

  • BVA-BDRC conducted 621 interviews with members of the NRLA online between 5th and 27th September.
  • RICS’ Residential Market Survey for October 2021 can be accessed at: https://www.rics.org/globalassets/rics-website/media/knowledge/research/market-surveys/uk-residential-market-survey-october-2021.pdf. It notes that: “On the back of this mismatch between supply and demand, near term rental growth expectations remain elevated, as a net balance of +54% of contributors anticipate rents rising over the coming three months. Interestingly, London now displays amongst the strongest expectations on this measure (net balance +74%). This represents a substantial turnaround considering rental expectations were firmly planted in negative territory across the capital between Q2 2020 and Q2 2021.”


Comments

by Mick Roberts

13:01 PM, 27th November 2021, About 2 months ago

I'll copy this here cause this post confirms why this other post shun't be helping the bad tenant even more. Rewarding bad behaviour.

https://www.property118.com/ministry-of-justice-consultation-to-enhance-legal-support-for-those-facing-eviction-or-repossession/#comment-139102

They say:

Some of these proposals are similar to those consulted on prior to the onset of the Covid-19 pandemic and were well-received by legal aid providers and other stakeholders.

Did they actually ask the other side? The people providing the housing? Now I'm sticking up for Benefit tenants here as I've only done about 9 evictions over 24 years & considering my number of houses & demographic of tenants, that ain't bad.
But cause they gave so much support to tenants during Covid ie. Yes u can live there rent free for 18 months & there is note the Landlord can do about it. We are now in the position that them same tenants PLUS now another thousands & thousands of more tenants are paying much more rent & supply has reduced further cause I'm hearing (on here too) of that many Landlords that cun't get their house back from bad tenant, now they have or close to have, they packing up, selling, no more property for the next tenant.

Gees, us that stay in business, we gonna' be multi millionaires cause the tenants can never leave us nor want to, we have no voids for big refurbishment costs in between & we can charge what we like.
Again before u shoot me down, many of mine are paying £100-£200 below market rent as I know 'em, loyal, compassion, empathy all that. But when new tenant comes in, I don't know 'em, I'm looking after myself cause I/we never know when/where the next Govt/Council attack/cost/charge/law/reg/rule/Trumped up charge is going to come from. So I'm getting as much rent as I can off next tenant. Cause I ain't got any competition cause the sensible Landlord has packed up when he could.

by LaLo

20:38 PM, 28th November 2021, About 2 months ago

All that's left now is for L/Ls to be bound in 'ball and chains' !


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