Tenants face an ‘acceleration’ in rent increases over the next five years, because the demand for private rented housing is outstripping supply, according to the Royal Institute for Chartered Surveys (RICS).
New figures published in the September 2019: UK Residential Market Survey show that in the lettings market, demand from prospective tenants is rising firmly for an eight month in a row, and that demand is still outstripping supply.
Commenting on the figures published today, RLA policy director David Smith said:
“Today’s figures demonstrate what we have long predicted, namely that because of recent tax hikes on the sector and threats to remove Section 21 repossessions without putting proper alternatives into place, landlords are not investing in new homes to rent, leading to demand outstripping supply. This only serves to hurt tenants as they face less choice and higher rents.
“Given how clear the evidence is the Government urgently needs to change course, and end those tax measures which are choking off investment in new homes to rent.”
- To see the latest statistics and data relating to the private rented sector, check out our RLA PEARL data observatory.
- The Government is currently consulting on plans to abolish Section 21, and to remove assured shorthold tenancies. The RLA believes what is being proposed in the consultation will not work and threatens the supply of homes for rent. The consultation closes on Saturday 12th October. You can respond directly online here, and read the RLA’s full response here.