A quarter of all landlords are planning to reduce the size of their portfolio over the next 12 months, a leading trade organisation has claimed.
This is the highest proportion recorded by the Residential Landlords Association (RLA) since it began collecting data on landlord confidence three years ago.
The RLA says it recently quizzed 2,500 landlords and found that many have a gloomy outlook for the future as the government’s ongoing attempts to stamp out the private rented market continue, including its proposed plan to ban the use of ‘no fault’ Section 21 evictions.
“All the talk of longer tenancies will mean nothing if the homes to rent on not there in the first place,” says David Smith, Policy Director at the RLA (left).
“The Government’s tax increases on the sector are already making it difficult for tenants to find a place to live, with many landlords not renewing tenancies.
“If rushed and not thought through, planned changes to the way landlords can repossess properties risk making the situation even worse. Action is needed to stimulate supply with pro-growth taxation and a process for repossessing homes that is fair to all.”
While supply decreases, demand for rented properties is increasing, the RLA’s research shows, which will soon lead to an increase in rents across the UK.”
Rightmove’s most recent rental tracker index bears this out.
Last month rents increased in every region of the UK except the North East with Scotland and Greater London seeing the largest increases of 6.7% and 8.2% respectively year-on-year.