With the number of homes coming up to let in short supply, Propertymark is calling on governments across the UK to reconsider the way landlords are taxed in a bid to encourage greater investment in the buy-to-let sector.
Demand for privately rented accommodation continues to grow, but recent figures reveal an alarming decline in the number of available properties to rent, as more existing renters look to renew their existing tenancies rather than move home, adding to the widening supply-demand imbalance in the PRS.
According to Propertymark’s latest research, 73% of agents say they have seen an increase in the number of tenants renewing their tenancies over the past 12 months. With the recent lack of stock, it suggests many tenants are preferring to stay put rather than move.
An average of 127 new applicants were registered per member branch in July. This number has been on a slow upward trend since February.
Agents signed up to Propertymark membership reported having 11 properties on average per member branch that were available to rent in July – the same figure as last month.
Some 82% of member agents reported month-on-month rent prices increasing in July – a new record. Pressure on rents has been steadfast since spring last year.
Nathan Emerson, CEO of Propertymark, said: “The private rental market continues to be battered by the perfect storm of high demand, low availability and affordability issues that shows no sign of easing.
“Governments across the UK are all engaged in a tenant-focussed reform of their private rental sectors. To boost supply, they also need to consider the heavy tax burden on property owners, the impact of more profitable and less regulated short-term lets, many of which stand empty for part of the year, and the lack of new homes being built to cope with the varied needs of a growing population.”
SOURCE: Property Industry Eye | AUGUST 23, 2022 | MARC DA SILVA
Estate Agents
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