Tenants left struggling as landlords sell off homes
Private sector tenants are continuing to struggle, with new data highlighting an ongoing shortage of homes to rent.
The NRLA is now calling on Government to axe the stamp duty hike announced at the last election, invest in court reform and lift the freeze on Local Housing Allowances rates coming in this April.
Almost eight in ten landlords, a huge 77 per cent across England and Wales, reported strong demand from prospective tenants in the final quarter of 2024 according to research from Pegasus Insights.
The figures, compiled for the NRLA and based on 789 interviews with members, suggest demand is highest in South West England, with 81 per cent of respondents reporting strong demand. Eighty per cent said the same in the South East and the North West.
Despite this strong tenant demand, 20 per cent of landlords said they had sold property over the previous 12 months. This was almost three times more than the seven per cent who said they had purchased new properties to rent.
Looking ahead to the next 12 months, 41 per cent of say they plan to cut the number of properties they rent out, compared to just five per cent saying they will increase the number.
The big sell-off
The figures follow the publication of government data which show that selling property is the single biggest reason for bringing a tenancy to an end - and almost three times the next most common reason.
With demand far outstripping supply, the impact will be felt most acutely by those in receipt of housing benefits, as the support they receive to cover their rents is set to be frozen from April this year.
What the NRLA wants
The NRLA is calling for pragmatic steps to boost the confidence of responsible landlords to stay in the market and sustain tenancies. As a result, the Government must:
• Scrap the disastrous stamp duty hike on the provision of new homes to rent in the Budget last year. Paul Johnson, head of the Institute for Fiscal Studies has warned the hike will: “reduce the supply of rental housing and so increase rents.”
• Propose a clear plan to ensure the courts more speedily process legitimate possession claims when Section 21 repossessions are ended by the Renters’ Rights Bill. This needs to include further investment in the justice system as called for by The Law Society.
• Reverse the decision to freeze housing benefit rates to support those on low incomes into rented housing.
Ben Beadle, Chief Executive of the NRLA, said: “Plans to improve security for tenants will mean nothing if the rental accommodation they need is not there in the first place.
“Tenants right across the country are feeling the effects of a lack of housing across the board, including with respect to the privately rented properties. Without change, the situation is only going to worsen. We need policies that genuinely support those who provide decent quality homes to rent.
“Tax hikes which penalise those wanting to provide such homes need to be scrapped. What’s more, those providing homes to rent must have the confidence to stay in the market when the Renters’ Rights Bill is passed. At present that confidence simply is not there.”
