Tenants face dwindling supply of housingMake Text Bigger
Private sector tenants face a perfect storm with the supply of homes to rent set to fall as demand increases.
According to a survey of almost 3,000 landlords published today, 22 per cent plan to sell at least one of their properties over the next year, with just 18 per cent planning to buy additional properties to rent.
The new data, published in the Residential Landlord Association’s (RLA) latest quarterly research report, finds also that 33 per cent of landlords have seen an increase in demand for homes to rent over the past three years.
Property118 member Barry Fitzpatrick said; “This is just the tip of the iceberg which has been predicted by industry experts and Landlords alike. The Government has chosen to ignore the obvious (why?) and save face by not reversing the policy now before any real damage is done. This will cost them the next election as the real damage of soaring rents and massive increases in homelessness, and misery to millions of Tenants forced to move to cheaper accommodation (with all the costs and upheaval that that entails) will be felt just before the next General Election.”
Faced by an imbalance in the supply and demand for rental properties, 47 per cent of landlords indicated that they expected to increase rents over the next year. 35 per cent indicated that the changes to mortgage interest relief which will see landlords taxed on their turnover rather than their profit, unlike all other businesses, was the main reason why rents might increase.
Commenting on the findings, RLA Chairman, Alan Ward, said:
“As demand continues to increase for homes to rent, punitive tax changes are discouraging investment by the majority of good landlords who want to provide accommodation.
“Whilst efforts by the Government to support institutional investment in the sector are welcome, this will remain a drop in the ocean.
“To meet demand, we need pro-growth taxation that actively supports and encourages the majority of landlords who are individuals providing good housing, to invest in the new homes to rent we so desperately need.”
Read the RLA’s Senior Researcher, Tom Simcock’s blog post on the findings here.
Read the full report from the RLA’s Private renting Evidence, Analysis and Research Lab (PEARL) here.
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