RICS Surveyors concerned about Landlords leaving the PRSMake Text Bigger
The Royal Institution of Chartered Surveyors (RICS) conducted a survey of its members which highlighted their concern over landlords leaving the PRS when demand for rental property is already outstripping supply.
Member Surveyors surveyed thought on average over the next five years rental price inflation would be 3% where as they thought house price inflation would only average 2%.
61% of Surveyors thought more landlords would exit the market than enter the market over the next year and only 12% predicted the reverse.
Over the next 3 years 52% predicted there would be a net loss of landlords to the PRS and only 17% thought there would be a greater number (some may still not fully understand the consequences of Section 24).
Paul Bagust, of RICS, expressed concern over this prediction of landlords exiting especially when current house price inflation would normally mean the reverse.
Paul said: “A functioning private rented sector is crucial to a healthy housing market and it’s predicted that over 20% of all households will be PRS by 2020. The sector is extremely diverse, including many one home landlords.
“RICS is part of a sector wide collaboration developing a revised industry led PRS Code of Practice, to raise standards for both consumers and landlords, bring clarity to those already in the market on various policy measures, and encourage landlords back into a professionalised market.”
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