Felicity Buchan, minister for Housing and Homelessness, wrote in a letter to Clive Betts, chair of Levelling Up, Housing and Communities Select Committee regarding its scrutiny of the Renters Reform Bill.
The letter addressed some questions raised by the committee and in it, Buchan wrote: “I recognise that demand is currently outstripping the supply of properties available to let.”
She said there could be several reasons for this such as a changing demographic, migration and pent-up demand from the pandemic.
Buchan also wrote: “I understand that increased mortgage costs are a real concern for landlords,” and said the government would look at ways to improve its understanding of the private rental sector including the financial position of landlords.
Government needs to rectify its mistakes
Responding to Buchan’s letter, Chris Norris, policy director for the National Residential Landlords Association (NRLA), welcomed the MP’s recognition of the challenges facing the sector.
However, he added: “The government needs to rectify the mistakes it has made in causing this.
“Since 2015, successive Chancellors have sought to choke off investment in the market with a series of tax hikes. All this has achieved is to cut supply whilst demand continues to soar for fewer and fewer properties. The ultimate losers in this are tenants, who are finding it more difficult to access the homes they need.
“We cannot continue to limp along without a pro-growth strategy which embraces tax measures to support investment and ensure renters can find a place to call home.”
