Rent rises caused by drop in supply say landlords
7 Jun 2019 01:17 PM
RESPONDING to reports that came out yesterday by the Resolution Foundation which warns that rent levels are making young people less mobile and the Housing Commission which argues that the number of households facing affordability issues with their housing costs has increased most in the rental market, David Smith, Policy Director for the Residential Landlords Association said:
“The biggest threat to rent levels are the policies being pursued by the Government which are choking off the supply of homes for private rent as demand is increasing. We warned Ministers that this would happen but they have not listened.
“Instead of attacking the private rented sector we need pro-growth policies that recognise the need for more homes of a good standard and at an affordable rent. Making renting less attractive for landlords will not make a substantial difference to the availability of property. We must focus on building more homes to address this.”
The Royal Institution for Chartered Surveyors has warned that average annual rent rises are likely to be around three per cent for the next five years as a result of the demand for rental properties continuing to outstrip supply.
Government statistics show that 10 per cent of private landlords representing 18 per cent of tenancies are already planning to decrease the number of properties they rent out, whilst five per cent of landlords, representing five per cent of tenancies, plan to sell all of their properties. Recent stamp duty statistics point to investment in the sector slowing up.