Renters face struggle to find homes as supply dries up

Renters face struggle to find homes as supply dries up

10:58 AM, 23rd February 2022, About 3 months ago 48

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Demand for private rented housing remained strong at the end of 2021, according to new data released today 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 56% reported a rise in demand for privately rented homes in Q4 2021. This was almost identical to the 57% who saw the same trend in the third quarter of 2021.

Regionally, demand was highest in the South West, with 77% of landlords confirming that demand increased in the final quarter of 2021. Meanwhile, in a sign of post-COVID recovery in the London market, 74 per cent of Central London landlords saw increased demand. 54% of landlords in this region witnessed a similar trend in Q3 2021.

Despite strong demand, across the country the proportion of landlords planning to reduce the number of properties they let (24%) outstrips the proportion plans to purchase homes to let (14%).

This research comes just days after the economic consultancy Capital Economics warned that, without urgent action, the supply of homes for private rent could fall by over half a million over the next ten years.

Capital Economics found that if owner-occupation and social housing continue at their ten-year average rate of growth, private rented sector supply would have to increase by 227,000 per year to hit government targets. It also noted that: “Even if the other [housing] tenures doubled their rate of growth, 105,000 homes for private rental would be needed each year, which is well above current rates of growth.

Ben Beadle, Chief Executive of the National Residential Landlords Association, said: “The rental housing supply crisis is only set to worsen, as renters continue to feel the effects of a market starved of a healthy supply of homes for private rent.

“The Government needs to accept that for all the rhetoric about homeownership, many people need to rent beforehand. Policies that dampen investment in the private rented sector serve only to reduce choice, drive up rents and, as a result, make homeownership more difficult to achieve.”



Comments

by Happy Landlord

11:58 AM, 23rd February 2022, About 3 months ago

Well what a surprise!!! One day the government will listen to those who know!!! Its exactly as landlords said when that idiot Osbourne decided to try to destroy the PRS.

by David Price

12:09 PM, 23rd February 2022, About 3 months ago

Reply to the comment left by Happy Landlord at 23/02/2022 - 11:58
"One day the government will listen to those who know!!!" Let us hope that this is within my lifetime and that HMG listen for more than one day.

by Azad Peshderi

12:55 PM, 23rd February 2022, About 3 months ago

Well done Mr Osborne, you tried to control the housing market which you failed miserably. All you did is pushing up the cost of the rental market.
Any 10 years old will tell you controlling the rental market will result in less investment and therefore less property on the market for rental, which equals higher rent!
Get rid of section 24 and things will get back to normal.

by Ross Tulloch

12:58 PM, 23rd February 2022, About 3 months ago

It has been made clear that private landlords are not wanted, so we have sold, so far, 30% of out properties, evicting 12. Endless regulation and tax, and minimum room sizes in HMOs render some of our properties unviable as we cannot live with permanently empty rooms. We have noticed demand has never been higher (London). The people who suffer most are the tenants at the bottom

by Ann Sutherland

13:39 PM, 23rd February 2022, About 3 months ago

Oh what a surprise and then they want to add EPC legislation to that .... I can't fathom it there must be a reason but I don't know what the government is thinking !!!???

by Luna

13:58 PM, 23rd February 2022, About 3 months ago

Yes, I too am selling at least two thirds of my total of 25 properties. I fear that the current severe shortage of rentals will soon be massively worse as more and more landlords sell. I wonder if the Landlord Associations are talking to the Government about this, so they can change tack before it gets even worse.
I feel sorry for the renters looking for accommodation and unable to find any.

by Helen

14:03 PM, 23rd February 2022, About 3 months ago

Yep. I am fed up too. I am starting to sell my portfolio as of this summer.

by Carol

16:26 PM, 23rd February 2022, About 3 months ago

4 sold, 7 to go. Even if this government back tracks, the uncertainty of what any government will do next means that I am getting out now before I am completely backed into a corner. Just too high risk with what should have given me a good pension

by Helen

16:41 PM, 23rd February 2022, About 3 months ago

I absolutely agree. It has become all too risky and not profitable especially after struggling to rent places during Covid and having another tenant needing to be evicted due to non payment. It will be such a shame to ask my remaining very good tenants to leave though.

by Happy Landlord

17:24 PM, 23rd February 2022, About 3 months ago

Like most of us I have worked dammed hard for my properties and I am not letting some crazy politician with a political axe to grind to put me down. For the moment I will have to increase rents to cover all these crazy regulations but at some time I do believe that things will change back again and we can get back to common sense - then we can all have a party - sorry business meeting!!

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