Strong tenant demand shows need to back rental market
Almost six in ten landlords report strong demand for homes to rent, as we warn ministers against policies undermining confidence in the sector.
A total of 58% of you reported demand to be either “very” or “quite” strong, in a poll carried out by research consultancy Pegasus Insight.
Demand was highest in Wales and the North East, where 74% of landlords reported strong demand, with the lowest levels of demand reported in the South East and West Midlands, at 51%.
The findings come as analysis by the Resolution Foundation has warned that a combination of large social housing waiting lists and affordability challenges for those wanting to buy their own homes, means demand for rented housing will remain buoyant.
Despite this ongoing need for homes to rent, the research points to continued concern about landlord confidence, with three times more landlords saying they have sold property than purchased property over the past year.
In total a fifth (21 per cent) said they had sold property, compared with just seven per cent who reported purchasing properties over the period covered by the research.
Income tax rise
The Government is preparing to increase income tax on rental income from next year, despite the Housing Minister acknowledging that previous tax hikes have been a key factor driving the sale of homes to rent.
NRLA chief executive Ben Beadle said: “Despite some data showing rental housing supply increasing, the reality is that it is still not enough to meet tenant demand.
“Long waits for social housing coupled with the high cost of homeownership means 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.”
