The number of homes in the Private Rented Sector available for rent has fallen significantly over the last six years by 11.4%, a new research shows.
A report by Home.co.uk has highlighted major concerns as people looking for a home to rent might struggle to find somewhere, as availabilities keep dropping. With a decrease of 34.7% Scotland saw the biggest drop in rental accommodation over the same period.
https://www.buyassociationgroup.com/en-gb/2017/06/16/private-rental-sector-set-grow-significantly/
In Wales, the number of homes has dropped by 28.1%, in the East Midlands by 24.6%, by 20.8% in the South East, by 16.7% in the West Midlands, by 16.5% in the South West and by 11.9% in East Anglia.
Some areas, such as Yorkshire and the Humber with a drop of 5.5%, the North West with 8.5% and Greater London with 3.9%, saw a less significant drop.
However, in total seven out of the country’s eleven regions saw a fall in excess of the UK wide average.
The only area that saw an actual increase in rental property was the North East, up by a surprising 33.4%.
The report once again underlines the trend of Generation Rent by highlighting that demand is rising due to the simple fact that a whole generation is priced out of the market. They’re left with no other choice than renting a home.
Once the changes made to buy-to-let taxation and political uncertainty added into the mix, many landlords choose to remain steady rather than investing in more property, which in return leads to a growing lack in supply.
Wales is one of the areas that has seen the largest drop in supply and, as a result, has experience an increase in rental costs by 11.3% over the last year. The report also revealed that Yorkshire and the Humber, one of the areas with a smaller drop in rental properties, has seen rents increase by 8.4%.
Doug Shephard, director at Home.co.uk, said:
“A barrage of red tape and taxation, at both local and national Government levels, has meant that the supply of rental properties has fallen behind demand in most regions thereby driving up rents.”
“Record low mortgage interest rates have driven unprecedented investment in the private rented sector over recent years. Simply put, those already with significant home equity have been able to come up with deposits for properties intended to let whilst aspiring home owners are as cash strapped as ever as they pay out huge sums in rent. However, ultra-low interest rates and the associated pain for renters look set to persist for the foreseeable future,” he concluded.
