0:04 AM, 13th February 2024, About A week ago 5
The National Residential Landlords Association (NRLA) is urging the Government to address the growing gap between the demand and supply of private rented housing, as new research shows a sharp rise in tenant enquiries.
According to an NRLA survey, 63% of landlords reported increased demand from tenants in the last quarter of 2020, compared to 25% in the same period in 2019.
This reflects the impact of the pandemic on the housing market, as well as other factors such as migration, demographics and affordability.
The NRLA’s chief executive, Ben Beadle, said: “The demand for private rented housing is only set to grow.
“As it does, would-be tenants will face the reality that there are not enough homes to meet their needs.
“This is a result of deliberate efforts using the tax system to dampen supply.”
He added: “The country needs more of every type of housing, and that has to include new homes for private rent.
“The quicker the Government takes this into account, the sooner we can relieve the struggles renters face when finding a place to call home.”
The NRLA is warning that the demand for private rented housing will continue to rise in the coming years, citing evidence from various sources in its Budget submission to the Treasury. These include:
The NRLA’s survey data also shows that landlords are far more likely to sell rather than invest in new properties to rent.
Whilst 11% plan to increase the number of homes they let, 30% plan to cut the number of properties they own.
The NRLA is calling on the Chancellor to scrap damaging tax hikes which cause misery for tenants.
It also says that the Treasury needs to end the 3% stamp duty levy on the purchase of homes to let.
This step could see nearly 900,000 new private rented homes being made available across the UK over the next 10 years, according to Capital Economics.
The move would also lead to a £10 billion boost to Treasury revenue through increased income and corporation tax receipts.
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