Housing Supply and Rents

Rental supply crisis warning

Sally Walmsley
Written by Sally Walmsley

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.” 

About the author

Sally Walmsley

Sally Walmsley

Sally Walmsley is the Magazine and Digital Editor for the NRLA. With 20 years’ experience writing for regional and national newspapers and magazines she is responsible for editing our members' magazine 'Property', producing our articles for our news site, the weekly and monthly bulletins and editorial content for our media partners.

1 Comment

  • The prospect of limiting my option to end a tenancy by issuing a Section 21 means I will to nolonger accept families with children of school age 5 -18. I intend to change my client group to singles sharing. Ironically I’ve seldom used the Section 21, however, on the occasions when I have it’s usually been to end a tenancy that has not worked out often due to late and irregular rent payments. I’ve used this option rather than hit a family with a Section 8, which inevitably would impact their chance fo being offered another property. Nevertheless, having it as an option has meant, I’ve given some tenants a chance to get their lives back on track because the Section 21 was a safety net available to me if I needed it.

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