11:38 AM, 11th May 2023, About 10 months ago
Despite record tenant demand for a rented home, the number of landlords quitting has rocketed to a new high, research shows.
Polling by the National Residential Landlords’ Association found that the number of landlords who are planning to sell their properties has hit its highest rate on record.
It found that in the first quarter of 2023, 33% of private landlords in England and Wales said they are planning to reduce their portfolio size.
The NRLA says this is an all-time high and is up from the 20% of landlords who planned to cut the number of properties they let in the same quarter last year.
The NRLA’s chief executive, Ben Beadle, said: “Renters are bearing the brunt of the supply crisis.
“Without change, matters will only worsen over the coming year.”
He added: “The Government needs to reverse its damaging tax hikes on the sector, which have discouraged the provision of the homes tenants desperately need.
“Moreover, responsible landlords need to have confidence that they can take back possession of their properties swiftly and effectively when they have good reason to when Section 21 ends.”
The survey also found that just 10% of landlords are planning to increase the number of properties they rent out.
And 67% of landlords say demand for properties from prospective tenants was increasing.
The survey shows that in every region of England and Wales more than 70% of landlords said demand had risen – the East of England recording the highest levels of demand.
The NRLA is warning that the supply crisis is set to deepen further without action by ministers and it wants the Government to undertake a full review of the impact of tax rises on the sector and develop new, pro-growth policies.
The organisation is also highlighting that ministers need to give landlords confidence when Section 21 repossessions end as part of the upcoming Renters’ Reform Bill.
It says that when landlords have good reason to end a tenancy – such as for tenant anti-social behaviour or rent arrears – the courts will consider and process such cases swiftly.
At present, it takes an average of around six months for a landlord seeking to possess a property via the courts to it happening.
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