New data reveals the chronic shortage of homes available to rent to meet demand.
Some 79% of landlords report that the demand for private rented housing was strong in the third quarter if the year, according to research from Pegasus Insight.
The data, compiled for the National Residential Landlords Association, indicates that landlords who let property in the South East experience the highest levels of demand, with 84% saying it was strong in Q3 2024.
By contrast, the figures reveal that demand for private rented accommodation is lowest in the West Midlands.
Despite this trend, across England and Wales 19% of landlords said they sold property over the previous 12 months – more than double the eight per cent who purchased properties over the same period.
Over the next 12 months 41% of landlords said they plan to sell at least some rental properties, compared to just six per cent saying they would buy.
The NRLA warns that, for the vast majority of tenants, landlords selling properties spells bad news. As it stands one in eight renters can purchase a home in the area in which they currently live, according to Oxford Economics.
This will be compounded by decisions made in the Budget which will further stifle supply in the rental market and increase stamp duty for many first-time buyers. Meanwhile, mortgage rates are expected to remain higher for longer than expected according to the Office for Budget Responsibility.
The lack of housing in the rental market will be felt hardest by those in receipt of housing benefits who face the prospect of their support for housing costs being frozen from next year.
Ben Beadle, Chief Executive of the National Residential Landlords Association, says: “Tenants the length and breadth of the country know that there are not enough homes to rent. Rather than seeking to tackle it, the Government is instead doubling down on policies that have caused the chasm between supply and demand to widen in the first place.
“Whilst landlords selling up might benefit a minority of tenants in a position to afford a home of their own, the vast majority will face a growing struggle to access rental homes.
“It’s time for a change of course. We need policies to support the provision of more decent quality homes for private rent alongside all other tenures.”
