What is the extent of the supply crisis in the South East?

9th March 2023

According to new data by the National Residential Landlords Association (NRLA), 81% of private landlords reported rising demand for rented housing as the squeeze on the supply of rented homes continues. Despite the strong demand, research suggests that just 7% of landlords in the South East plan to increase the number of properties they rent in 2023, whilst 37% of landlords said they planned to cut the number they let. According to the Bank of England, the discrepancy between the demand and supply of rented housing is in part a consequence of higher borrowing costs and tax hikes on the sector. The Bank also issued formal warnings setting out how a fifth of landlords with buy-to-let mortgages will face an increase in payment of over £300, which in today’s economic climate, is causing equity concerns across the board.

Ahead of the Budget, the NRLA is calling on the Government to undertake a full review of the impact of tax rises on the sector. This has been supported by the cross-party Levelling Up, Housing and Communities Select Committee, which has concluded that “landlords with small portfolios are currently critical to the provision of private rented accommodation.” It argues that a tax review of this kind should make the sector “more financially attractive to smaller landlords.”

Joanne Dron, East of England spokesperson for the National Residential Landlords Association, also commented with: “The East of England needs more homes for private rent. Without them, renters across the region face a bleak future as they struggle to find anywhere to call home. Sadly, this crisis was all too predictable. It has been caused by successive Chancellors’ discouraging investment in the sector through the introduction of ever more punitive tax hikes.”

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