7th
Dec 2023
The number of private landlords who have reported rising demand from tenants looking for homes is more than three times higher than before the onset of Covid.
Independent research undertaken for an industry body states that around 71 per cent of landlords taking part in the research, have reported a rise in tenant demand in Q3 which has risen from 65 per cent a year ago and just 22 per cent in Q3 2019 before the pandemic lockdown.
The research consultancy’s report highlights the highest demand is in the West Midlands with 76 per cent of landlords saying a s significant rise in rental demand, Wales at 75 per cent followed by 74 percent in the South East.
In spite of the demand outstripping supply over 10 per cent landlords have sold a property in Q3 this year, which is double the five per cent of landlords who had bought properties in those months.
The research also found that 28 per cent of landlords that took part said they are making plans to reduce the number or properties which are let out over the next year; whereas just 8 per cent plan to buy more properties to rent out in the next twelve months.
The industry body predictably warns the supply demand imbalance will put the landlords in control to raise rents and could impact the Chancellor’s unfreezing of housing allowances.
Additionally without any government assistance to encourage private landlords to remain in the sector tenants will be put into an untenable position with rogue landlords because of the lack of alternative rented homes.
A spokesperson for the industry body, says: “Would-be renters face a desperate situation as ever-growing numbers seek to access a dwindling number of available homes.
“The Government needs to accept the folly of a tax system that makes investment in holiday lets more sustainable than long term homes to rent.
“We need pro-growth tax measures. This should include ending the stamp duty levy on the purchase of homes to rent out, as well as reversing mortgage interest relief changes which have hit the sector hard.”
Further research for the industry body has found that by taking off the 3 per cent stamp duty surcharge on additional homes could see 900,000 new PRS homes becoming available across the UK in the next decade and provide a £10bn ‘thank you’ to Treasury revenue in the next ten years.
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