28^th Aug 2017

A trade body claims that the shortage of homes, (always on a downward spiral and not set to change) is causing higher numbers of new tenants who have given up on ever becoming homeowners.

The body releases its latest analysis of the sector from a survey carried out with 3,000 landlords that shows a major increase in demand for private rented properties whilst more and more landlords are selling up, or deciding against adding to their portfolios.

According to the results, around 22% of landlords have every intention of selling at least one of their properties in the next twelve months and those hoping to increase their portfolios, was lower than one in five respondents; this is despite 30% stating that they had seen an increase of prospective tenants throughout the last thirty six months.

As previously reported, there are strong claims that rents will rise because of supply and demand market forces, and 47% of landlords predict this will happen sooner rather than later.

Once again the rent rises will be blamed on the government's anti-landlord stance through their program of reductions on buy-to-let mortgage tax interest relief, with 35% of landlords citing this as the major reason.

A spokesperson for the trade body, 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.

The spokesperson does appreciate the government's roll out of its Build to Rent program but he feels that it is nothing more than a 'drop in the ocean'.

He added: “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."

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