Rental shortage on brink of crisis as supply drops by up to 60%

News Category: Industry News

The UK is facing a severe housing shortage, with not enough rental property to meet demand.

According to ARLA, which did research among 531 of its members’ offices plus 382 landlords, the situation is near crisis point.

A separate report, from buy-to-let lender Paragon, independently found ‘unprecedented’ demand for rental accommodation, with most landlords anticipating it to rise yet further.

ARLA operations manager Ian Potter said: “There simply isn’t enough housing stock coming on to the rental market. We need to see tangible measures to support the private rented sector.

“Investors need to be treated as businesses, with proper incentives to invest in and refurbish older properties. This will improve standards and encourage much-needed investment to help get the market back on its feet.

 

“Banks need to be told to be more flexible about the provision of finance for the buy-to-let sector which has saved this government from an even greater housing shortage.

“Without such measures, there is a serious risk that a shortage of rentals will create another form of housing crisis.”

Nigel Terrington, chief executive of Paragon, whose report also covered the first quarter of this year, said: “Landlords are in a strong position. They are enjoying unprecedented levels of tenant demand, and structural changes taking place in the UK will create further demand.

 

“Whilst this is positive for existing landlords, it emphasises the vital need to expand supply.”

In London, ARLA president Lucy Morton said: “The lack of stock is almost at crisis point. In a year, it has dropped by about 60%.”

Former president Robert Jordan said: “Governments seem not to understand that the private rented sector is a very important element in the housing supply chain. There is far too much legislation, which puts off new landlords entering the market.”

http://www.arla.co.uk/q1ri


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