New data from the Residential Landlords Association suggests things are going to get even worse for tenants already seeing rent hikes, with nearly one in four landlords planning to sell up over the next year. The RLA said that tenants face a “perfect storm” with the supply of homes to rent set to fall as demand […]
New data from the Residential Landlords Association suggests things are going to get even worse for tenants already seeing rent hikes, with nearly one in four landlords planning to sell up over the next year.
The RLA said that tenants face a “perfect storm” with the supply of homes to rent set to fall as demand increases.
According to the RLA, 22% of landlords plan to sell at least one of their properties over the next year, with just 18% planning to buy additional properties to rent.
The RLA, which interviewed nearly 3,000 landlords, also found that that 33% of landlords have seen an increase in demand for homes to rent over the past three years.
Faced by an imbalance in the supply and demand for rental properties, 47% of landlords indicated that they expected to increase rents over the next year.
Changes to mortgage interest relief which will see landlords taxed on their turnover rather than their profit was cited as the main reason why rents might increase.
RLA Chairman, Alan Ward, said: “As demand continues to increase for homes to rent, punitive tax changes are discouraging investment by the majority of good landlords who want to provide accommodation.
“Whilst efforts by the Government to support institutional investment in the sector are welcome, this will remain a drop in the ocean.
“To meet demand, we need pro-growth taxation that actively supports and encourages the majority of landlords who are individuals providing good housing, to invest in the new homes to rent we so desperately need.”
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Either ways it’s getting worse for tenants!