Landlords are warning of a crisis in the private rental market, as new figures show a sharp drop in supply over the last year.
According to the latest Residential Market Survey by the Royal Institution for Chartered Surveyors, last month saw a net balance of minus 29% of surveyors reporting a fall in landlord instructions – twice the negative rating in November 2018.
With tenant demand continuing to increase, RICS predicts that this will lead to rent increases of around 2% over the next year and around 3% a year over the next five years.
As reported by 24housing in October, research by the Residential Landlords Association (RLA) revealed that more landlords are selling properties than buying, while demand continues to increase.
In a survey of over 2,700 landlords, almost 25% have seen the demand for private-rented property increase over the last three months, with 41% saying there had been no change.
Just 15% said that demand has fallen.
The latest RICS report outlined that the latest numbers are “once again indicative of a decline in the volume of fresh rental stock coming on the market – an ongoing theme over much of the last three years.”
On reports, David Smith, Policy Director for the Residential Landlords Association 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.”