12th
Feb 2025
A trade sector association emphasises that incentivising good landlords, instead of penalising them is crucial to addressing supply and demand imbalances.
Its latest report highlights that demand continues to surpass supply with an average of seven applicants vying for each available property at member branches.
Members also reported that legislative changes are generating significant uncertainty within the private rented sector.
A spokesperson for the association, said: “In the lettings market, rent levels in some areas across the country are being forced to drop as many renters are being pushed to their limits when it comes to long-term affordability.
“With the ongoing legislative and regulatory pressures placed on investors, this is causing a lack of supply against a backdrop of growing demand.
“This long-standing issue needs to be addressed to provide a sustainable and effective private rented sector, and this can only be achieved by incentivising rather than penalising good landlords who provide crucial homes to the nation.”
A South West member also reported that uncertainty within the private rented sector is causing disruptions in supply and demand: “The full impact of the Renters’ Rights Bill is still unknown due to uncertainty around its costs and implementation timeline.”
The report indicates that 33% of agents observed rent increases towards the end of last year.
In the residential sales sector, the trade association's report highlights a seasonal dip in buyer activity during the winter months.
The report shows that the average number of viewings per available property dropped to 1.5 in December 2024 which is consistent with seasonal patterns, an average of 7.8 homes per member branch were listed for sale.
However, the trade body’s spokesperson predicts that forthcoming changes to stamp duty in April could stimulate a rise in buyer demand during the winter period.
He said: “Winter is historically quieter in the sales market as people hunker down.
“However, with the announcement that many will see increases in their Stamp Duty bill from April 2025, which will cost the average buyer in some cases, thousands of extra pounds, we expect there to be a noticeable shift in activity moving into 2025.”
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