The trade body sounded the alarm after the November housing market report from the Royal Institution of Chartered Surveyors (RICS) showed a net balance of -29 per cent of surveyors reporting a fall in new landlord valuation instructions. In October, the net balance was -21 per cent.
The net balance is the proportion of surveyors reporting a rise in new landlord valuation instructions, for example, minus those reporting a fall.
At the same time, RICS surveyors reported steady tenant demand across the country. Due to the imbalance between supply and demand, rents are expected to rise modestly over the next three months. Over the next 12 months, surveyors think rents will grow by two per cent.
David Smith, policy director for the RLA, said: “If the decline in the supply of new homes to rent continues to fall whilst demand is still rising, this is going to lead to a crisis in some areas as tenants desperately search for somewhere to live. This is all the result of increased taxation and other measures over the last three years and the result has been highly predictable as we said it would be.
“The new government needs to urgently address the problem and make changes in the forthcoming budget to relieve the pressure on landlords and encourage new investment to meet the demand.”