Demand from tenants is heating up – as the lack of rental stock in the UK continues to bite.
Some 77% of landlords across England and Wales report strong tenant demand, with the highest being in the South West (81%), research from Pegasus Insights on behalf of the Residential Landlords Association shows.
At the same time, 20% of landlords said they sold property in the past year, compared to 7% who bought new properties to rent.
Ben Beadle, chief executive of the NRLA, said: “Plans to improve security for tenants will mean nothing if the rental accommodation they need is not there in the first place.
“Tenants right across the country are feeling the effects of a lack of housing across the board, including with respect to the privately rented properties. Without change, the situation is only going to worsen. We need policies that genuinely support those who provide decent quality homes to rent.
“Tax hikes which penalise those wanting to provide such homes need to be scrapped. What’s more, those providing homes to rent must have the confidence to stay in the market when the Renters’ Rights Bill is passed. At present that confidence simply is not there.”
Looking ahead to the next 12 months, 41% of providers of rental housing say they plan to cut the number of properties they rent out, compared to just 5% saying they will increase the number.
The NRLA called for the government to scrap the increase to the stamp duty surcharge affecting investors, as the tax was increased from 3% to 5% in the Budget last year.
Also, there needs to be a clear plan on speeding up the court process when it comes to evictions, or landlords will face a struggle once Section 21s are abolished as part of the Renters’ Rights Bill.
Thirdly the government’s decision to freeze housing benefit rates should be reversed, to help those on low incomes rent housing.
