It is natural for people and professionals to plan their year. A survey of landlords, undertaken by the Residential Landlords Association, has found that more than one-third of private landlords intend to reduce the number of properties they let in 2020. With some vowing to exit the market entirely, there may be a change to the letting landscape, which creates challenges for tenants and opportunities for landlords and even house-buyers.
The survey found 34% of landlords, from more than 2,000 who were contacted for the study, expressed their intention to reduce their investment in the market. The figures for one year ago were 30%, so there has been an increase in landlords planning to leave the market.
Demand outstrips supply in rental market
Only 12% of landlords intend to increase their property portfolio, a figure which is down on the 14% response from last year. These figures come alongside information from the Royal Institution for Chartered Surveyors, stating demand for private rented homes is more significant than supply. This status has also been backed by Rightmove, who claim there is currently “strong demand” from tenants.
A vital issue for many landlords is the issue of stamp duty levy on additional properties, and 45% of respondents told the RLA that this is a deterrent to further investment in the market.
David Smith is the policy director for the Residential Landlords Association, and he said; “This is yet more clear evidence of the sell-off of private rented housing largely due to the government’s extra tax on new rental homes. It is ridiculous that when the country needs all the extra housing, it can get, it penalises good landlords who invest in new homes. With a new government and a Budget due, we need a shift in policy to one that supports investment because otherwise there will be a growing supply crisis in the private rented sector as demand continues to rise.”
Rental market regulations have changed considerably in recent times
Many existing landlords have struggled to deal with changes in rental market legislation because their working practices are based on former processes. New landlords have an opportunity to base their figures and working practices on the current legislation, hopefully allowing them to find an auspicious opportunity to run their business.
First-time buyers should also keep in touch with the market because if landlords do leave the industry, more homes will become available. This could lead to an increase in the property being supplied to the market, which is vital for first-time buyers.
“The demand for rental property isn’t going to go away, and there is an on-going opportunity for landlords”, said Thomas Morris Biggleswade Branch Manager Ryan Coyne. “If you are considering investing in property, and would like guidance or hands-on support, we are more than happy to assist you.”
Letting your home is stressful, but with the right support, you can make the process easier. Book a valuation at a time that is of suitable to you or alternatively, you can phone our Biggleswade branch, managed by Ryan Coyne by calling us on 01767 310111.