Research* carried out by the National Landlords Association (NLA) shows tenant demand is still growing, with four out of 10 landlords reporting an increase in demand in the areas where they are letting.
Most of the landlords in the NLA’s survey said that tenant demand continues to be “either stable or increasing” in the areas where they operate over the last three months, although this does vary between regions.
Around one in five questioned were uncertain, perhaps because they had no recent experience with new lettings, but on average 40 per cent of landlords had seen an increase.
East Anglia and the East of England saw the biggest net growth in tenant demand, with a 48 per cent increase. This was closely followed by the South West with a 45 per cent increase, and the South East and Outer London, with around 41 and 40 per cent respectively.
Only six per cent of landlords reported a decrease in tenant demand in the last three months, but North East landlords reported the largest net decrease in tenant demand of all the regions. They saw a 15 per cent decline, followed by a 12 per cent decline in Wales and Yorkshire and 11 per cent in the North West of England.
Carolyn Uphill, Chairman, NLA, said:
“These figures demonstrate just how important the private rented sector is in housing a growing number of people.
“Our research indicates that five per cent of landlords will sell up following the Government’s plans to remove mortgage interest relief for landlords, which could affect some 600,000 tenancies**.
“The Government’s planned changes, which will be phased over a period of years, gives landlords affected time to review their finances, but some will still be forced to sell or trade at a loss which is unsustainable and the projected impact will mean that ultimately renters will lose out as a dwindling stock drives up prices and competition for homes.”
*NLA Quarterly Landlord Research Panel
**Calculated as: 5% of UK landlord population (75,000) x average number of tenancies per landlord (8) = 600,000.
Selling Up? – "5% of Landlords Sell Following Govs Plans to Stop Mortgage Interest Relief" – https://t.co/EzvgXVWeWM
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