Rental market crisis: NRLA urges Government to act

Rental market crisis: NRLA urges Government to act

0:02 AM, 9th October 2023, About 7 months ago 8

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The National Residential Landlords Association (NRLA) has called on the Government to take urgent action to address the supply crisis in the rental market.

The call comes after new figures from Rightmove revealed that there are 25 tenants enquiring about each available rental home.

According to the data, which covers newly let properties, rents in the private rented sector (PRS) are rising faster than inflation and average pay rises, with rents increasing by 5.9% in London and 5.5% in the UK in the year to August 2023.

In that same period, inflation was at 6.7%, while the average monthly pay increased by 6.7%.

‘Result of failed Government policies’

The NRLA’s chief executive, Ben Beadle, said: “Tenants are bearing the brunt of the supply crisis in the rental market. This is a result of failed Government policies.”

He added: “Throughout the Conservative conference, ministers said they wanted landlords to have the confidence to stay in the market.

“However, warm words will achieve nothing without policies to make this happen.”

Take action to stem the loss of rental properties

The NRLA is now urging the Government to take action to stem the loss of rental properties across the country, which is leading to increasing rents as fed-up landlords sell up.

Mr Beadle said: “A good first step would be for the Treasury to encourage investment by reversing the damaging tax hikes which penalise landlords who provide much-needed housing.

“It’s also crucial that the Government makes clear assurances that landlords who make legitimate possession claims will not become mired in a broken court system once section 21 evictions are abolished.”

Highlight the vital role of the private rented sector

As the Labour Party Conference kicks off in Liverpool this week, the NRLA is hosting a fringe event to highlight the vital role of the private rented sector (PRS) in providing quality housing.

The NRLA argues that the UK is facing a housing crisis, with the supply of homes falling far behind the demand for all types of tenures.

The PRS is a key part of the solution, it will say, but landlords are also struggling with the challenges of the market.

The NRLA is calling for tax reforms and support for landlords, who are mostly ordinary taxpayers, not wealthy tycoons, and who offer the secure and decent rented homes that the nation urgently needs.


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Comments

Teessider

9:54 AM, 9th October 2023, About 7 months ago

Why does the damp squib that is the NRLA not recognise that a burgeoning population is the primary cause of homelessness?

Badgers tusk

11:42 AM, 9th October 2023, About 7 months ago

Reverse the anti landlord policies and maybe we can be a part of the recovery in providing much needed accommodation for people. Simply not working to penalise decent people who are just trying to get by and provide food standard of housing for the millions of people who 1) can’t afford their own home or 2) don’t want to buy and would prefer to rent. Simples.

Old Mrs Landlord

14:42 PM, 9th October 2023, About 7 months ago

Reply to the comment left by Badgers tusk at 09/10/2023 - 11:42
Gingerbread houses?

Seething Landlord

15:30 PM, 9th October 2023, About 7 months ago

Reply to the comment left by Teessider at 09/10/2023 - 09:54
What do you expect them to do about it?

David Nichols

18:17 PM, 9th October 2023, About 7 months ago

With labour's anti landlord rhetoric I don't think many investors will be persuaded to change course just yet.

David Bourne

0:18 AM, 10th October 2023, About 7 months ago

The residential rental property crises we have seen over the past 12 months was started by George Osborne in 2015. His short-sighted tax policies has resulted in the exodus of landlords from this market.

Being a landlord became the only business in the UK where loan interest could no longer be a direct deduction from rental income and pushed many landlord into the 40% tax bracket. With interest rates having more than doubled in the past 18 months this has accelerated the exodus. Investing in the residential rental market was no longer an attractive proposition. According to Zoopla 1 in 4 properties for sale in London in the first 4 months of 2023 had previously been rented.

Little wonder that remaining landlords have pushed up rents to the maximum to cover increased loan interest and increased taxes.

George Osborne also scrapped the 10% wear and tear allowance for providing a furnished property. There was no longer any incentive for landlords to provide furniture and this has increased the number of unfurnished properties for renting. For such properties, not only do tenants have to come up with a deposit and the first month's rent it can cost several thousands to furnish.(furniture, curtains, appliances etc).

If the Tories do nothing this crises will not go away and if Labour make the changes they are suggesting it will get worse.

Reluctant Landlord

9:00 AM, 10th October 2023, About 7 months ago

I'd like to see NRLA act!

Seething Landlord

9:04 AM, 10th October 2023, About 7 months ago

Reply to the comment left by Reluctant Landlord at 10/10/2023 - 09:00
What do you want them to do that they are not already doing?

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