As the UK gears up for the selection of its next Prime Minister, a supply crisis in the private rented sector must be on the successful candidate’s to-do-list, according to the National Residential Landlords Association (NRLA).
Research, conducted for the association has found that almost a quarter (23%) of landlords intend to reduce the number of rental properties they own in the coming year - up from a fifth a year ago. Only 14 per cent say they plan to rent out more homes to let.
In addition, 60% of landlords have reported higher demand for rental properties, compared to 39% a year ago. Official data shows that rents rose by 2.8% this year, the highest growth since 2016.
The NRLA attributes falling supply to government policies over the past decade, including the stamp duty surcharge on second homes and changes to mortgage interest tax relief for landlords. Research by the think tank Capital Economics suggests that ending the stamp duty surcharge could release 900,000 new homes over ten years.
The NRLA wants the next Prime Minister to encourage investment in the sector. Ben Beadle, chief executive, said: “We need a strong and vibrant private rental market that meets the needs of those who rely on the flexibility it provides, those who need somewhere to live before becoming homeowners and those for whom the promise of social housing tomorrow provides cold comfort today. The next administration needs to reset its plans for the sector.”
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