Campaigns Housing Supply and Rents

Tenants will be hit by supply crisis in rental market

Victoria Barker
Written by Victoria Barker

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.”

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About the author

Victoria Barker

Victoria Barker

Victoria is the Communications Officer for the RLA.

She is responsible for producing articles for our Campaigns and News Centre, the weekly E-News newsletter and media review, and creating social media content. She also contributes to our members magazine, Residential Property Investor.

3 Comments

  • I own one property, My husband and I bought this 25 years ago because I have no private pension of my own. I am 81 and have worked either part time or full time for 60 years still receiving only part retirement pension. I don’t think I can rent out any longer if these reforms go ahead I am too old to struggle with a bad tenant. In 25 years I have had good and bad tenants. Sometimes leaving me thousands out of pocket. My tenant at the moment is a single Mother with 3 children and has kept my property in a good condition whilst I have invested back into it. She has been with me 3 years and I am just hanging on hoping against hope for a fairer outcome. We have mutual respect so I dread being in a position where I would have to ask her to leave so I can sell it. She is grateful to be leaving in a decent home.

  • The fruits of the governments toils towards landlords over the last few years are coming home to roost. I have 10 properties and been a landlord for over 15 years now. But enough is enough, in the last 3 months, i have accepted offers on 5 of these properties and the other 5 are about to go on the market. I will not be looking to reinvest nor will i consider buying to let in the future. The hostile attitude of the government, their tax reforms and them putting all the power in the hands of the tenant has left me tens of thousands out of pocket and with the added stress of rogue tenants, damaged property, rent not being paid, court evictions and heavy handed councils all contributing towards this. Of the 5 properties i’ve sold, only 2 are being re-let to the tenants, the other 3 will be lived in by the buyers, 1 tenant will have to find alternative accommodation for her family and is struggling as my rent was lower than market rates due to her being a long term tenant and me not increasing the rent for 4 years!

    As someone said to me, it is what it is!

  • I have been a landlord for 32 years and own many properties.In all of that time I have only had to serve a section 21 notice on two occasions and only taken one to court who disappeared before the court date.Its fair to say my letting agents check out future tenants with a fine tooth comb so as to alleviate the risk of bad tenants.Landlords have suddenly become cash cows for the government and the councils so I do not think for one minute it will get better for us.They say we are a business but the taxman has taken away the tax advantages so we are penalised especially those who have buy to let mortgages.Unfortunately we get clobbered all the time and it’s only natural that tenants will pay the price in higher rents.

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