The National Residential Landlords Association (NRLA) has urged the government to consider this as it released the results of its latest survey. The study of 708 landlords found 23 per cent were planning to reduce the number of properties they let in the next 12 months, a rise from the fifth who said they would be making cuts when asked a year ago.
Just 14 per cent plan to increase the number of properties they let, which is flat on last year and four per cent down on the sentiment in Q1.
Amid the prospect of static supply, 60 per cent of landlords in England and Wales have reported a rise in demand for rental housing in Q2. This is significantly up on the 39 per cent of landlords who were seeing an increase last year.
As well as this, rents rose 2.8 per cent in the year to May, the largest annual growth since January 2016.
This is also having a knock-on effect on other kinds of housing, as 76 per cent of councils surveyed by the District Councils Network said landlords leave the private rented sector or converting to holiday lets had resulted in longer waits for council housing.
The NRLA said government policy and tax changes had directly led to the contraction of the private rented sector. The association has urged the next to “end this hostility to landlords” and encourage investment to meet demand.
Ben Beadle, chief executive of the National Residential Landlords Association, said: “The last six years prove that it was a nonsense to think that cutting the supply of rental housing when demand is so strong would make it easier for those saving for a home of their own.
“Driving rents up just leaves tenants with less cash to save for a deposit.
“We need a strong and vibrant private rental market that meets the needs of those who rely on the flexibility it provides, those who need somewhere to live before becoming homeowners and those for whom the promise of social housing tomorrow provides cold comfort today.
“The next administration needs to reset its plans for the sector.”
