Private landlords have warned of the high possibility of a looming crisis in rented housing as demand continues to rise - a direct result from more homes being sold than bought in the sector.
A survey undertaken by the Residential Landlords Association (RLA) shows that almost 25% of members report that there has been a high demand for private rented homes, one that has been steadily increasing in the past three months. Near to 41% have reported no change, but 15% have alternatively reported a falling demand. The research, based on a poll of more than 2,700 respondents, however, has shown the supply of private rented property continuing to fall, with near to 31% of landlords planning to sell at least one home in the next year, and only 13% are planning to buy at least one.
The RLA has accused the Government of embarking on a programme that will cut investment in private rented housing through the use of various tax increases in an attempt to encourage more houses to be available for purchase by owner-occupiers. The policy director David Smith has commented, "Those who argue that a smaller private rented sector is good for tenants wanting to buy a home are plain wrong. The Government's policies are choking off the supply of homes to rent whilst demand remains strong. This is only making life more difficult and potentially more expensive for those looking for somewhere to live."
Adding that, "Without an urgent change of course and the introduction of pro-growth policies the situation will only become worse."
The RLA is calling on the Government to "adopt pro-growth measures" such as scrapping the stamp duty levy on the purchase of additional properties where landlords add to the net overall supply of homes available, including the idea of bringing long-term empty homes into use.
Just last month, the Royal Institution of Chartered Surveyors had warned of an "acceleration" seen in rent rises in the next five years as a result of the demand for private rented housing getting too large, and eventually outstripping supply.
