A quarter of private landlords plan to cut the number of properties they let in the next 12 months.
The assertion comes from the National Residential Landlords Association whose latest survey suggests the supply of rental property is likely to keep falling over the next year.
‘The next prime minister must address the supply crisis in the private rented sector if homeownership ambitions are to become a reality’, it said.
Conducted by BVA-BDRC, the survey found that 23 per cent of landlords were planning to reduce their letting portfolio. This is 3 per cent more than a year ago.
In contrast, just 14 per cent said they planned to increase the number of properties they let, unchanged since the same point last year and down 4 points since the first quarter of 2022.
Landlord intentions to reduce their involvement in the private rented sector are in spite of the increased demand – reported by 60 per cent of landlords in England and Wales in the second quarter of the year – and rising rents. Official data has put the annual growth in rents to May this year at 2.8 per cent, the highest rate of annual growth since January 2016.
‘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’, said NRLA chief executive Ben Beadle.
‘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’.
