By using this website, you agree to our use of cookies to enhance your experience.


Rental supply to dwindle as landlords look to sell

The supply of homes is set to fall while demand from tenants continues to increase, according to the latest research from the Residential Landlords Association (RLA).

A survey of almost 3,000 landlords has revealed that a 'perfect storm' of increased demand, landlords selling properties and deciding not to grow their portfolios will combine to have a significant impact on the supply of rental property.

Some 22% of landlords surveyed said they plan to sell at least one of their properties over the next year, while less than a fifth said they are planning to buy additional buy-to-let properties.


What's more, a third of those surveyed said they have experienced an increase in demand for rental homes over the last three years.

An imbalance of supply and demand will lead to average rents increasing, according to 47% of landlords participating in the study.

However, 35% said they believe the main reason rents will rise is the phasing out of buy-to-let mortgage interest tax relief, which commenced in April.

“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," says Alan Ward, RLA chairman.

He says that the government's efforts to support institutional investment in the rental sector via Build to Rent are 'welcome' but represent a 'drop in the ocean'.

“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," concludes Ward.

Want to comment on this story? If so...if any post is considered to victimise, harass, degrade or intimidate an individual or group of individuals on any basis, then the post may be deleted and the individual immediately banned from posting in future.

  • icon
    • 14 August 2017 08:39 AM

    The government seems to be thinking that all tenants secretly crave to own their own property and to have a mortgage. This is simply not the case. Many tenants are either younger people living in a transitory mode as they work on their career, and need to be fluid and move about, and at the other end you have elderly tenants who could never raise a mortgage even if they wanted to. Which many do not. So therefore section 24 is a very odd and not to say deeply detrimental instrument of politics. To all parties.

  • G romit

    This is just the tip of the iceberg which has been predicted by industry experts and Landlords alike.
    The Government has chosen to ignore the obvious (why?) and save face by not reversing the policy now before any real damage is done. This will cost them the next election as the real damage of soaring rents and massive increases in homelessness, and misery to millions of Tenants forced to move to cheaper accommodation (with all the costs and upheaval that that entails) will be felt just before the next General Election.

  • icon

    22% are going to sell at least one of their properties. At the same time, "less than a fifth" are going to buy more properties. What is "less than a fifth"? 19%? If so, the number selling is almost the same as the number buying. Pity the article doesn't say, or provide a link to the report itself.

  • Colin Lillicrap

    Any rented property with an EPC rating of F or G will be difficult to sell as it will need improvements before 1 April 2018 in order to comply with the Minimum Energy Efficiency Standards (MEES). Readers may like to read my article "Understanding Minimum Energy Efficiency Standards – a guide for Commercial Landlords" in Property Investor Today issued on 9 August

  • icon
    • 07 September 2017 15:54 PM

    I can't wait to start the arguments with the HMRC when I get taxed on more profits. What profit ? I shall say. Where is this magical profit ? Where is the magical money from this magical profit with which to pay you the extra tax? Disallowing debt servicing costs from the profit and loss account is Alice in wonderland.


Please login to comment

MovePal MovePal MovePal
sign up