Next PM must tackle rental supply crisis in Yorkshire and the Humber
The next Prime Minister must tackle the supply crisis in the private rented sector in Yorkshire and the Humber if homeownership ambitions are to become a reality.
That is the warning from the National Residential Landlords Association (NRLA) as new survey data shows that the supply of homes to rent in the region is likely to keep falling over the next year.
According to research by the consultancy BVA-BDRC, 28 per cent of landlords in Yorkshire and the Humber plan to cut the number of properties they let in the next 12 months. This is up from the 20 per cent of landlords who said the same a year ago.
In contrast just 15 per cent say they plan to increase the number of properties they let, down six points since Q1 2022.
Against a picture of falling supply, 78 per cent of landlords in Yorkshire and the Humber reported increased demand for rental housing in the second quarter of the year. This is up from 65 per cent who confirmed they had seen the same trend a year ago.
With the demand for rental housing outstripping supply, official data has found that private rents across Yorkshire and the Humber rose by 3.2 per cent in the 12 months to June this year - the largest annual growth since July 2008.
The NRLA warns that the trend is a direct result of government policy and punitive tax increases since 2015. Each of these factors have merely served to shrink to private rented sector.
Since the Government began to restrict mortgage interest relief for landlords, the number of private rented homes in Yorkshire and the Humber has fallen by 15,000. In stark contrast, those providing holiday lets continue to enjoy full mortgage interest relief. This has created a market distortion which favours short-term housing over longer term rentals.
The NRLA calls on the next Prime Minister to end this hostility to landlords and to take steps to encourage investment to meet the rising demand.
Research by Capital Economics suggests that lifting the stamp duty levy on additional properties would see almost 900,000 new private rented homes made available across the UK over the next decade. This would lead to a £10 billion boost to government revenue through increased tax receipts.
Ruth Millington, Yorkshire and the Humber Spokesperson for the National Residential Landlords Association, 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 rents up, leaving tenants with less cash to save for a deposit.
“We need a strong and vibrant private rental market in Yorkshire and The Humber. 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.”