Regional research findings reveal state of UK's supply crisis
Demand for rental homes across the UK has reached record levels as almost a quarter of landlords say they plan to sell off homes.
Recently published data gathered by research consultancy BVA/BDRC and publicised by the NRLA shows the extent of the supply crisis across England’s various regions.
The news comes as the BBC reports an increasing number of young renters are signing new contracts worth over 30% of their wages, with the under 30s spending more on rent than any other working-age groups.
NRLA policy director Chris Norris has appeared on BBC radio today to talk about the findings, based on statistics from property market consultancy Dataloft.
He said that the country is facing a supply crisis, with rents rising as landlords leave the sector as a result of increasing costs, tax and regulation changes, and has called on the next Prime Minister to take action to address this issue or risk dooming the homeownership ambitions of many across the country.
He said the next administration must adopt the pro-growth tax measures which will help deliver the private rented homes the UK, so desperately needed if rents are to be kept at affordable levels.
Regional breakdown
According to BVA/BDRC’s conclusions, in North West England 22 per cent of landlords say they will cut the number of properties they let in the next 12 months. By contrast, 20 per cent of those surveyed reported that they will increase the number of properties they rent out to tenants over the same period.
The picture was also bleak in other parts of the UK. 28 per cent of landlords in Yorkshire and the Humber reportedly plan to cut the number of properties they let in the next 12 months. Meanwhile, 78 per cent of landlords saw an increase in demand for rental housing in Q2 2022 (up from 65 per cent at the same time last year).
It was a similar story in South East England, with 21 per cent set to cut properties for rent in 2022/23. Additionally, 74 per cent of landlord respondents stated that they have witnessed an increase in demand for rented housing during Q2 2022.
Commenting on the state of the private rented sector in the South East of England, Marion Money, South East Representative for the NRLA, said:
“Today’s figures show it was a nonsense to think that cutting the supply of rental housing, when demand is strong, would make it easier for those who want to buy their own home. All it is doing is driving up rents, and leaving tenants with less cash to save for a deposit.
“We need a strong and vibrant long term private rental market in the South East. This is vital for those who rely on the flexibility it provides, as well as the help it provides to those who need somewhere to live before becoming homeowners. For many in this position, the promise of social housing tomorrow provides cold comfort today.
“Overall, the next administration needs to reset its plans for the sector and demonstrate support for both landlords and tenants across the region.”
