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'Perfect storm': landlords report big surge in tenant demand

tenant demand

Two-thirds of landlords have experienced rising demand for private rented housing - but one-third plan to cut the number of properties they rent.

In the final quarter of last year, 63% of landlords reported increased demand from tenants, according to NRLA data compiled by BVA-BDRC, which is substantially higher than before the pandemic when 25% of landlords reported increased demand.

Despite this, the survey data shows that landlords are far more likely to sell rather than invest in new properties to rent. While 11% plan to increase the number of homes they let, 30% plan to cut the number they rent.

Substantial increase

The landlord body warns that demand for private rented housing is set to increase substantially, pointing to projections from UCAS which show there could be a million applicants for higher education in a single year in 2030, almost a third higher than in 2022.

Meanwhile, the ONS reports that the number of those aged 15-29 is set to increase by more than 6% in the next decade, while net migration flows are likely to settle at 245,000 annually by 2026/27, with migrants three times more likely to be in private rented accommodation than the UK-born population.

Stamp duty

To address the chronic shortage of homes to rent, the NRLA wants the Chancellor to end the 3% stamp duty levy on the purchase of homes to let which could see almost 900,000 new private rented homes made available across the UK during the next ten years, according to Capital Economics.

NRLA chief executive Ben Beadle (pictured) says: “The country needs more of every type of housing, and that has to include new homes for private rent. The quicker the government takes this into account, the sooner we can relieve the struggles renters face when finding a place to call home.”

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