Government must step in to help boost supply - Propertymark

Propertymark’s ARLA President is calling on the government to intervene to help boost the flagging stock of rental properties.

The call, by agent David Votta, comes in response to the latest market snapshot by Zoopla. 

The portal has found that lettings agencies typically have 10 rentals compared to over 16 before September 2021, and it suggests that the number of rental properties UK hasn't actually fallen but has remained roughly static since 2016: however, demand for rented accommodation has risen to more than 50 per cent above normal levels in the same period.

The portal draws its information from listings on its website, which cover 85 per cent of UK properties listed for rent. Existing tenants, aware of the shortage, choose not to move, the portal says.

In response Propertymark’s Votta says: “Zoopla’s latest report reiterates the huge disparity we’ve been highlighting concerns around for some time. The reported increase in demand when compared to the supply of homes paints a worrying picture.

“The UK government must urgently intervene and realise the importance that landlords of private rented property play in housing the ever-growing population. Incentives must be provided for investment rather than continuous financial and regulatory hurdles which are preventing some from entering the market.

“However, despite the current economic turmoil, it is positive to see that landlords and agents have been working hard to keep rents down as low as possible. But whilst pressure on rents has eased slightly since the peaks of last summer, it has by no means gone away, and without a rise in supply in the market, this is set to continue.”

The Zoopla market snapshot was conducted for a BBC investigation into the private rental sector, and the portal’s research guru - Richard Donnell - told the corporation: "We've seen a big increase in demand for rented housing from record high immigration, the economy reopening [after the pandemic]. But at the same time, we just haven't seen much new investment by landlords in rented housing. And that's creating a real crunch in availability."

The BBC investigation says large numbers of landlords are leaving the market - 11 per cent of homes for sale on Zoopla were previously rented. For others, short-term lets such holiday lets or Airbnb offer better returns than long-term tenants. Zoopla has seen a three-fold increase in short-term lets since 2019.