Demand for rented homes set to rise
Demand for rented accommodation is set to soar as the supply of homes falls, a new survey has found.
According to the survey of almost 3,000 landlords, 18 per cent are planning to buy additional properties to rent.
The Residential Landlord Association’s (RLA) latest quarterly research report, also finds that 33 per cent of landlords have seen an increase in demand for homes to rent over the past three years.
RLA chairman Alan Ward said: “To meet demand, we need pro-growth taxation that actively supports and encourages the majority of landlords who are individuals providing good housing, to invest in the new homes to rent we so desperately need.”
Nearly half (47 per cent) of landlords who took part in the survey said they expected to increase rents over the next year.
A further 35 per cent indicated that the changes to mortgage interest relief - which will mean landlords are taxed on their turnover rather than their profit, unlike all other businesses - was the main reason why rents might increase.
We know that landlords have been hit hard recently,” says Alex Huntley, Head of Operations at Simple Landlords Insurance.
"Tax changes, universal credit, stamp duty, tenancy deposit caps - are all starting to add up. Like anything else, though, it’s all about perspective. Figures from the Halifax, for instance, report house prices going down in June - based on their own mortgage information, this coupled with demand increasing is a real positive landscape for landlords.
“From our perspective, we’re seeing lots of landlords staying still, and riding out the current legislative, political and financial storm. 88% of our landlords still plan to be landlords in 2 years time. 32% want to expand their portfolios - and for landlords looking to invest, falling house prices and increased demand could actually mean new opportunities.”