New findings show South West has third highest demand for private rented housing in England
Demand for private rented housing in the South West is the third highest in England according to a new survey for the National Residential Landlords Association (NRLA).
Nearly two thirds (60 per cent) of private landlords in the region reported that demand for their properties by tenants increased in the second quarter of 2021. This compares with an average of 39 per cent of landlords across the country reporting an increase.
The survey, conducted in partnership with research consultancy BVA/BDRC, shows that, although 14 per cent of landlords in in the South West plan to increase the number of properties they rent out over the next year, the same proportion plan to cut the number of homes they have. This supports figures from the Royal Institution of Chartered Surveyors which shows that the demand for private rented housing in the region is outstripping supply.
The strong demand for rental homes results from the relaxation of COVID restrictions, a more buoyant economic outlook and a continued pattern of tenants leaving London as the trend towards home working continues. Just over half of landlords in central London, 53 per cent, reported a fall in tenant demand with only 15 per cent of landlords saying it had increased.
Nationally, the survey found that landlords reported that the demand for private rented housing has reached a five year high.
The supply crisis in the region can be seen in growing rental prices. According to the Office for National Statistics private rents across the South West increased by 2.5 per cent in the 12 months to July this year which was above the inflation figure of 2.1 per cent.
Hannah Darling, South West Regional Representative for the National Residential Landlords Association said:
“Across the South West the supply of homes is failing to keep up with rapidly-increasing demand. If this trend continues, tenants will be negatively impacted by the acute shortage of private rental properties. Ensuring that it responds to this problem should be of the utmost importance to the Government, and immediate steps must be taken to prevent a further significant downturn in investment across the private rented sector.”