Two thirds (63 per cent) of landlords report the demand for private rented housing is continuing to increase, research by the National Residential Landlords Association has revealed.
The research, which was compiled by research consultancy BVA-BDRC, found in the final quarter of 2023 the majority of landlords reported increased demand from tenants.
This is a “substantially” higher proportion than prior to the pandemic as, in Q4 2019, 25 per cent of landlords reported increased demand.
NRLA chief executive, Ben Beadle, predicted the demand for private rented housing is “only set to grow” and, as it does, would-be tenants will “face the reality that there are not enough homes to meet their needs”.
The release of these findings follows the NRLA’s warning that the demand for private rented housing was set to increase “substantially”, something that it outlined in its recent budget submission to the Treasury.
In the submission, the association highlighted factors such as the number of those aged 15-29 being set to increase by over 6 per cent over the next decade.
However, despite this growing demand, the NRLA’s survey showed that landlords are “far more likely” to sell rather than invest in new properties to rent.
While 11 per cent plan to increase the number of homes they let, 30 per cent plan to cut the number they rent.
Amid a chronic shortage of homes to rent to meet demand, the NRLA called on the chancellor to scrap “damaging” tax hikes which cause “misery” for tenants.
“The Treasury needs to end the 3 per cent stamp duty levy on the purchase of homes to let,” the association advised.
It added that this step could see almost 900,000 new private rented homes made available across the UK over the next 10 years.
“It would also lead to a £10bn boost to Treasury revenue through increased income and corporation tax receipts,” the NRLA additionally stated.
tom.dunstan@ft.com
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