According to a survey by BVA-BDRC for the National Residential Landlords Association (NRLA), 30 per cent of landlords are planning to reduce the number of properties they rent this year.
The association said this was the “highest level of planned disinvestment” in over six years. This is also despite 65 per cent of respondents saying the demand for private rented homes had risen in Q4 2022, up from the 56 per cent who said the same a year prior.
Just nine per cent of landlords are planning to increase the number of properties in their portfolio over the year, down from the 14 per cent who said the same in Q4 2021.
In light of this survey and recent government policies to tighten investment in the private rental sector, the NRLA has asked the Treasury to analyse the impact of these changes on the supply of homes to rent.
Ben Beadle, chief executive of the National Residential Landlords Association, said: “From students queuing to view properties, through to benefit claimants who struggle to access homes they can afford, the impact of the supply crisis in the rental market is stark.
“The harsh truth is that the government’s efforts to discourage investment in the sector are working. But punitive taxation alongside record demand for rented housing is a disastrous combination that serves only to hurt renters.”
He added: “The supply crisis we see is entirely government made and the policies of successive Chancellors have backfired spectacularly – it is time to change tack. The Treasury needs to undertake a comprehensive review of the taxation of the rental market.
“This needs to assess the impact recent tax hikes, including changes to mortgage interest relief and stamp duty, are having on supply. We then need pro-growth measures to support renters to access the homes they need.”
