Residential Landlords Association (RLA)
Crisis looming in supply of rented properties
Landlords are warning of a rented housing supply crisis as a new survey shows more landlords are selling properties than buying whilst demand continues to increase.
According to research by the Residential Landlords Association based on a survey of over 2,700 landlords, almost 25 per cent have seen the demand for private rented property increase over the last three months, with 41 per cent saying there had been no change. Just 15 per cent said that demand has fallen.
The growth in demand comes as the supply of private rented housing continues to fall. According to the research over the next 12 months 31 per cent of landlords plan to sell at least one property with just 13 per cent saying they plan to buy at least one.
The figures are supported by recent statistics from other organisations. According to Rightmove, a shortage of private rented housing together with strong demand from tenants has led to record asking rents across most parts of Great Britain. The Royal Institution of Chartered Surveyors has warned of an acceleration in rent increases over the next five years as a result of the demand for private rented housing outstripping supply.
Over recent years the Government has embarked on a programme designed to cut investment in private rented housing through various tax increases in an attempt to encourage more houses to be available for purchase by owner occupiers.
The latest figures however show that this strategy has been a failure. The RLA is calling on the Government to adopt pro-growth measures including scrapping the stamp duty levy on the purchase of additional properties where landlords add to the net overall supply of homes available, including bringing long term empty homes into use.
David Smith, Policy Director for the RLA, recently said:
“Those who argue that a smaller private rented sector is good for tenants wanting to buy a home are plain wrong. The Government’s policies are choking off the supply of homes to rent whilst demand remains strong. This is only making life more difficult and potentially more expensive for those looking for somewhere to live.”
“Without an urgent change of course and the introduction of pro-growth policies the situation will only become worse.”
- To read the research report, click here.
Latest News from
Residential Landlords Association (RLA)
November licensing update for landlords12/11/2019 16:15:00
In our licensing update this month, we not only take a look at some of the proposed licensing schemes that are up for consultation across the country, but we also take a closer look at one of our six key manifesto asks when it comes to improving enforcement for all.
Merton Council fine criminal landlord £5000 for health and safety breaches12/11/2019 14:15:00
A landlord in London has been ordered to pay nearly £5000 for failing to apply for a HMO licence and breaching health and safety laws.
Wales fees ban: Welsh Government publishes default fees consultation responses11/11/2019 15:25:00
The Welsh Government has confirmed it intends to bring forward regulations to provide clarity on what landlords will be able to charge in respect of default payments, as part of the Wales fees ban, in the New Year.
General Election 2019 – What we know so far11/11/2019 13:15:00
Ahead of political parties launching their election manifestos over the next week, we look at some of the statements politicians from each of the three major parties have made when it comes to housing – and in particular the private rented sector.
Welsh Government to trial leasing scheme for private landlords11/11/2019 11:05:00
The Welsh Government recently announced plans to introduce a pilot ‘lease’ scheme for private landlords, designed to increase housing stock in the country.
Energy Efficiency: Government rejects plans to increase cost cap to £5k08/11/2019 15:15:15
Landlords with properties that have an energy performance rating of F or G will not be expected to pay up to £5k in order to improve the energy efficiency rating of the property, after a recommendation to raise the cap was rejected.
RLA launches 2019 election campaign07/11/2019 15:05:00
The RLA’s vision for the PRS of the future has been outlined ahead of December’s General Election.
Funding to tackle criminals a step in the right direction05/11/2019 16:25:00
New funding announced by the government to tackle criminal landlords is welcome – but is nowhere near enough.