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Demand for private rental property soars again - new figures

Two thirds of landlords say the demand for private rented housing is continuing to increase, according to new research commissioned by the National Residential Landlords Association .

In the final quarter of last year 63 per cent of landlords reported increased demand from tenants according to data compiled by research consultancy BVA-BDRC. This is a substantially higher proportion than prior to the pandemic. In Q4 2019 25 per cent of landlords reported increased demand.

The release of these findings follows the NRLA’s warning that the demand for private rented housing is set to increase substantially. In its Budget submission to the Treasury, the NRLA highlights:

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- Projections from education body UCAS which show there could be a million applicants for higher education in a single year in 2030, almost a third higher than in 2022;

- The number of those aged 15 to 29 is set to increase by over 6 per cent over the next decade according to the Office for National Statistics;

- Net migration flows are likely to settle at 245,000 annually by 2026/27 according to the Office for Budget Responsibility. Data shows that migrants are three times more likely to be in private rented accommodation than the UK-born population;

- Continued difficulties for many who aim to become homeowners. Hamptons forecasts a repeat of the situation which followed the 2008-09 financial crisis, which saw an extra one million potential homeowners unable to afford higher mortgage payments and instead turn to the rental market for accommodation.

Despite the growing demand, the NRLA’s survey data shows that landlords are far more likely to sell rather than invest in new properties to rent. Whilst 11 per cent plan to increase the number of homes they let, 30 per cent plan to cut the number they rent.

Amidst a chronic shortage of homes to rent to meet demand, the NRLA is calling on the Chancellor to scrap damaging tax hikes which cause misery for tenants.

The NRLA says the Treasury needs to end the three per cent stamp duty levy on the purchase of homes to let. 

This step could see almost 900,000 new private rented homes made available across the UK over the next ten years according to Capital Economics. It would also lead to a £10 billion boost to Treasury revenue through increased income and corporation tax receipts.

Association chief executive Ben Beadle says: “The demand for private rented housing is only set to grow. As it does, would-be tenants will face the reality that there are not enough homes to meet their needs. This is a result of deliberate efforts using the tax system to dampen supply.

“The country needs more of every type of housing, and that has to include new homes for private rent. The quicker the Government takes this into account, the sooner we can relieve the struggles renters face when finding a place to call home.”     

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.

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    Well having heard Gove “ Le Snake 🐍 “, on Laura Kunenssberg yesterday, this will accelerate up to the next election 🆘. , they will bring in the s21 ban before the vote or court reform 😬😬. We are like corks in a storm.

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    Gove goes with the wind , the direction will change another 5 times in the next 3 months.Hopeless.

     
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    Hilarious that this story is just under the one where Shelter et al are calling for more anti-LL measures in the RRB!

    My son is struggling to sell his 2 bed house. It would sit very comfortably in my BTL portfolio but I don't want it! Too concerned about getting a tenant that I can't remove!

    The tenants groups' ideas that they are helping tenants is laughable.

  • David Hollands

    Private landlords are selling up as we are tax on the rent and not the profit.
    Landlords need the tax relief for mortgage interest.
    We are now selling up in six months time if there is no change.
    All the quality homes supplied by private landlords are being sold as a result of the government policies and ones they are trying help will lose out " The Tenants" .

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    Oh there will be change David 😬 it will get worse 🆘

     
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    Whoever thought that making it more expensive to supply a property for rent would make life better for renters? Obviously they didn't, it was all intentional but now the damage has been done, they can't reverse the anti landlord juggernaut as it's too politically sensitive. So renters will suffer the higher costs for years to come until it becomes a crisis that has to be dealt with by radical means, either a massive increase in supply of council houses, a level playing field for private landlords, or both.

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    Or state appropriation of your property like they did in the Covid crisis.

     
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    I totally agree Peter. Existing landlords are leaving the PRS and with all the anti landlord rhetoric in the media I doubt whether new smaller landlords will be investing. I agree they won’t be able to reverse the anti landlord juggernaut. A massive increase in council houses is vital but where will the money come from?

     
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    Margaret, they are sequestrating private properties. They are becoming the council houses. The question is where will all the private renters live!

     
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    That is a frightening prospect William and one I can see happening.

  • Fed Up Landlord

    Just sold two in a month. Four more left and then I'm gone. Polly Bleat can have all the homeless tenants she has caused around her house for tea. Muppet.

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    She will have them. Means it increases the need for her good work :) Not that she will take any homeless in mind you!

     
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    My Theory is the Tory Government saw opportunities for their freinds and funders to create property portfolios and created a situation where hard working landlords would sell their properties cheap so their chims could benefit . Why is stamp duty on buying six properties different different from stamp duty if you just buy one , likewise if you manage your portfolio in a limited company you can claim back interest on your tax return . One set of rules for the exceptionally wealthy , another for the hard working individual that's preparing for retirement . Don't get me started on how quickly CGT has been reduced . I honestly thought a Conservative Government would look after landlords , how wrong was I .

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    All this legislation is to look good to show that they are relevant. Polly Bleat needs to provide funding for social tenants, where ever and whenever her bleats takes her. Just brainstorming and sitting on her laptop, moving her mouse to prove she is on the side of tenants by criticising the LLs is no answer. She needs to make practical use of the charity money to pay rent for genuinely needy and social tenants. This sounds like hard work for her and her team. Sitting and just moving her fingers on the mouse and taking a huge income is not an answer, especially she earns more than most LL's.

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