"Despite some data showing rental housing supply increasing, the reality is that it is still not enough to meet tenant demand"
- Ben Beadle - National Residential Landlords Association
Nearly six in ten landlords are reporting strong demand for rental homes, yet the sector continues to shrink as more landlords sell up than invest, according to new research from the National Residential Landlords Association.
A poll of NRLA members, conducted by research consultancy Pegasus Insight, found that 58% of landlords describe demand as either "very" or "quite" strong. The figures were highest in Wales and the North East, where 74% of landlords reported strong demand. The South East and West Midlands recorded the lowest levels, cited by 51% of landlords in those regions.
The findings coincide with analysis from the Resolution Foundation, warning that long social housing waiting lists, combined with affordability barriers for would-be homeowners, will keep demand for rented housing buoyant for the foreseeable future.
That sustained demand sits awkwardly alongside the direction of travel among existing landlords. Three times more reported having sold property than purchased it over the past year: 21% said they had sold, compared with just 7% who reported buying during the same period.
Adding to those concerns, the Government is preparing to increase income tax on rental income from next year. That decision comes despite the Housing Minister acknowledging that previous tax rises have been a significant factor in driving landlords to sell.
"Despite some data showing rental housing supply increasing, the reality is that it is still not enough to meet tenant demand," said Ben Beadle, chief executive of the National Residential Landlords Association.
"Long waits for social housing, coupled with the high cost of homeownership, mean the private rented sector will remain crucial for many people trying to find a place to live.
"Against this backdrop, it makes no sense for the Government to increase taxes on rental housing when renters already face limited choice in many parts of the country.
"Ministers should be focused on encouraging responsible landlords to stay in the market and invest in good quality homes to rent. Anything that undermines confidence risks weakening supply, driving up rents and making it harder for those struggling most with cost-of-living pressures to find the homes they need."
