Three times more landlords say they have sold property than purchased property during the past year, as the NRLA warns ministers against policies undermining confidence in the sector.

A poll of NRLA members conducted by Pegasus Insight found that a fifth (21%) had sold property, compared with just 7% who reported purchasing properties over the period covered by the research.

The findings come as analysis by the Resolution Foundation has warned that a combination of large social housing waiting lists, alongside affordability challenges for those wanting to become homeowners, means demand for rented housing will remain buoyant.

Increase

The NRLA research also found that 58% of landlords report demand for homes to rent is either “very” or “quite” strong. Demand was highest in Wales and the North East where 74% of landlords reported strong demand, with the lowest levels of demand reported in the South East and West Midlands (cited by 51% of landlords).

However, the government is preparing to increase income tax on rental income from next year - creating separate tax rates for property income, starting at 22% - despite Housing Minister Matthew Pennycook acknowledging that previous tax hikes have been a key factor driving the sale of homes to rent.

Chief executive Ben Beadle (pictured left) says despite some data showing rental housing supply increasing, the reality is that it is still not enough to meet tenant demand.

“Long waits for social housing coupled with the high cost of homeownership means the private rented sector will remain crucial for many people trying to find a place to live,” adds Beadle.

“Against this backdrop, it makes no sense for the government to increase taxes on rental housing when renters already face limited choice in many parts of the country.

“Ministers should be focused on encouraging responsible landlords to stay in the market and invest in good quality homes to rent. Anything that undermines confidence risks weakening supply, driving up rents and making it harder for those struggling most with cost-of-living pressures to find the homes they need.”

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