Despite strong tenant demand, 33% of landlords will sell some or all of their rental properties if rent controls are implemented
A third of private sector landlords in England and Wales would consider selling their rental properties if rent controls were introduced, according to new research involving members of the National Residential Landlords Association (NRLA).
The study, conducted by research consultancy Pegasus Insight, also revealed that 82% of landlords reported strong tenant demand for rental properties during the second quarter of the year.
Demand was highest in the South West, followed by the South East, the East of England, and the East Midlands. The North East experienced the lowest levels of demand, with 68% of landlords describing it as strong.
Despite the robust demand, the data showed a trend of landlords selling properties rather than purchasing new ones.
Over the past year, 17% of landlords sold rental properties, compared to just 8% who bought new ones. Looking ahead, 10% of landlords plan to buy additional properties for rent, while a third intend to sell.
The research also highlighted that 33% of landlords would sell some or all of their rental properties if rent controls were implemented. The International Monetary Fund has noted that rent controls are often linked to reduced housing supply.
The research coincides with analysis by property website Rightmove, which estimates that an additional 120,000 rental properties are needed to bring rent growth back to more typical levels of around 2% per year.
“Whichever way you look at it, there are more renters looking for a place to live than there are homes available,” said Ben Beadle (pictured), NRLA chief executive. “Ultimately rent controls would be a disaster for tenants. All they would do is choke off supply further, undermining what little choice tenants currently have when looking for somewhere to live.
“Housing is expensive because we don’t have enough of every type of property, be it for owner occupation, social rent or private rent. The only way to solve this crisis is to boost supply right across the board.”
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