Minister Accepts Supply-Demand Pressures Increasing Rents
In response to comments by Treasury Minister, Emma Reynolds MP, that rental prices “are ultimately determined by the total supply of housing, relative to demand”, Ben Beadle, Chief Executive of the National Residential Landlords Association, said:
“The Minister is right. Rents are going up because there are simply not enough properties to meet demand, and measures proposed by the Government are going to worsen an already dire situation.”
Figures from the property portal Zoopla show that there are an average of 12 renters chasing each home for rent, double the level seen before the pandemic.
Government data also suggests that a third (31 per cent) of landlords say they are planning to cut the number of properties they rent out. This has increased from 22 per cent who said the same in 2021.
Ben Beadle added:
“Changes such as the hike to stamp duty on the purchase of homes to rent that was announced in the Budget will only further dampen supply. Likewise, the lack of preparation for the increased pressures on the courts due to the Renters’ Rights Bill will deter investment in new homes to rent.
“It is also of serious concern that proposals to improve the energy efficiency of private rented housing contain no detail of the financial package needed to support investment in the required works. Without such support, these changes will pile yet more cost pressures onto the sector.
“The Government needs to address the shortage of homes for private rent as the only viable route for improving affordability in the sector. Until it does so, it will be tenants that continue to suffer the consequence of the rental housing supply crisis.”
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