A new investigation from the Residential Landlords Association has revealed that the supply of rental properties is set to fall further, while demand from tenants continues to soar.
The survey of nearly 3,000 landlords suggests that a ‘perfect storm’ of rising demand, landlords selling and not growing portfolios will all combine to have a substantial impact on the supply of available rental properties.
22% of landlords questioned said that they intend to sell at least one of the properties in their portfolio during the next year. One-fifth said that they plan on buying additional buy-to-let properties.
In addition, one-third of those surveyed said that they have seen a rise in demand for rental accommodation during the last three years.
Worryingly, 47% of those questioned said that they feel an imbalance between supply and demand will see rents increase. 35% said that the phasing out of mortgage interest tax relief is the main reason for this.
Alan Ward, Chairman of the Residential Landlords Association, said: ‘As demand continues to increase for homes to rent, punitive tax changes are discouraging investment by the majority of good landlords who want to provide accommodation.’
‘To meet demand, we need pro-growth taxation that actively supports and encourages the majority of landlords who are individuals providing good housing, to invest in the new homes to rent we so desperately need,’ he concluded.