Tenants Face a Dwindling Supply of Housing, Reports the RLA
Private tenants are set to face a dwindling supply of rental housing, as demand increases, according to the latest quarterly report from the Residential Landlords Association (RLA).
The survey of almost 3,000 landlords found that 22% plan to sell at least one of their rental properties over the next year, while just 18% plan to buy additional properties to let.
The new data shows that 33% of landlords have experienced an increase in demand for homes to rent over the past three years.
Faced by an imbalance of supply and demand of rental housing, 47% of landlords said that they expected to increase rent prices over the next year. The main reason why rents might increase was the change to mortgage interest tax relief, which will see landlords taxed on their turnover rather than profit – unlike all other businesses – by 35%.
The Chairman of the RLA, Alan Ward, comments on the findings: “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.
“Whilst efforts by the Government to support institutional investment in the sector are welcome, this will remain a drop in the ocean.”
He urges: “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.”
Landlords, are you planning to put your rents up or sell your properties in the near future?
We encourage all those that let properties to private tenants to consider how they will be affected by your actions – always remember to consider how their finances and lives will change if you put rents up or sell the property they’re living in.
We’d also like to highlight recent research that found that a third of rental homes fail to meet basic health and safety standards; it is imperative that you protect your tenants’ health.