Landlords are warning of a crisis in the private rental market as new figures show a sharp drop in supply over the last year.
The latest Residential Market Survey by the Royal Institution for Chartered Surveyors (RICS) for November shows a net balance of minus 29% of surveyors reporting a fall in landlord instructions – double the proportion in November 2018.
With tenant demand continuing to increase, RICS predicts that this will lead to rent increases of around 2% over the next year and around 3% a year over the next five years.
David Smith, policy director for the RLA said: “If the decline in the supply of new homes to rent continues to fall whilst demand is still rising, this is going to lead to a crisis in some areas as tenants desperately search for somewhere to live.
“This is all the result of increased taxation and other measures over the last three years and the result has been highly predictable as we said it would be.
“The new government needs to urgently address the problem and make changes in the forthcoming budget to relieve the pressure on landlords and encourage new investment to meet the demand.”