Record number of former rentals up for sale
New figures out today show the rental housing crisis is worsening – with the number of former rental homes up for sale hitting record highs
The NRLA said the data, from property portal Rightmove, is bad news for all tenants looking for a home, with a bold new approach needed if the Government is to tackle the massive imbalance between supply and demand.
It says pro-growth taxation measures are vital to stem the tide, with NRLA Policy Director Chris Norris saying October’s Budget offers the perfect opportunity to introduce changes.
He said: “Today’s data will be a serious concern for all those renters struggling to find somewhere to call home. With demand already massively outstripping supply, Rightmove suggests the situation is set to get worse.
“Every rental home that is sold simply exacerbates the imbalance between supply and demand. Whilst some of these properties will inevitably end up on the owner-occupied market, that will be of little comfort to those households struggling to access quality housing.
“What we need is a housing strategy that recognises the need for more of every type of property, including high quality homes for private rent. That’s why the Budget needs to announce pro-growth tax plans to meet the needs of renters across the country.”
Rightmove says the proportion of former rental properties moving into the sales market is at its highest on record, which indicates; “more landlords are selling up, some potentially driven by the mooted increase in Capital Gains Tax in the Autumn Statement on 30th October.”
What does the data say?
The findings show that:
- 18% of properties now for sale were previously on the rental market, compared with 8% in 2010.
- The hotspot is London, where nearly a third (29%) of homes for sale were previously for rent, followed by Scotland (19%) and the North East (19%)
- The previous five-year average for homes moving from the rental to sales market in Great Britain is 14%, suggesting that this isn’t a sudden mass exodus of landlords
- The number of new properties coming to the market for sale is now 14% ahead of last year.
More information
- For more information on the NRLAs tax calls visit our campaigns pages here.
- For the latest blog by Chris Norris on the impact of potential changes to the way in which landlords are taxed click here.
