Yet, more landlords continue to sell rental properties
Nearly eight in 10 landlords (79%) reported strong demand for private rented housing during the third quarter of 2024, according to research from Pegasus Insight conducted for the National Residential Landlords Association (NRLA).
Landlords in the South East experienced the highest levels of demand, with 84% describing demand as strong. In contrast, the West Midlands recorded the lowest levels of demand for private rental properties.
Despite high demand, the study revealed that 19% of landlords across England and Wales sold at least one rental property in the past year — more than double the 8% who purchased properties in the same period. Looking ahead, 41% of landlords said they plan to sell rental properties in the next 12 months, while just 6% indicated plans to buy.
The NRLA expressed concern over the impact of reduced rental housing supply on tenants, particularly given that only one in eight renters can afford to buy a home in their current area, according to research from Oxford Economics.
The issue could be exacerbated by measures announced in the recent Budget, which the NRLA argues will further limit rental market supply. These measures include increased stamp duty for some first-time buyers and a projection by the Office for Budget Responsibility that mortgage rates will stay elevated for longer than previously expected. The challenges are expected to hit housing benefit recipients hardest, as their housing support is set to be frozen from next year.
“Tenants the length and breadth of the country know that there are not enough homes to rent,” said Ben Beadle (pictured), chief executive of the National Residential Landlords Association. “Rather than seeking to tackle it, the government is instead doubling down on policies that have caused the chasm between supply and demand to widen in the first place.
“While landlords selling up might benefit a minority of tenants in a position to afford a home of their own, the vast majority will face a growing struggle to access rental homes.
“It’s time for a change of course. We need policies to support the provision of more decent quality homes for private rent alongside all other tenures.”
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