Tenant demand increases as supply reducesTenant demand for rental properties has risen 23% in the year nationally. It was forecast that the rules of supply and demand would push the bias toward demand being inadequately satisfied much later than the current report suggests. Many of the industry experts envisaged that demand would outstrip supply in 2020 but already we are seeing the effects of the new recently introduced legislation with 19% of Landlords vacating the market. In London the figures of Landlords exiting the Buy to Let market is running at 37% and has already lead to a increase in rents of 7%.
Boris has got his work cut out with Brexit and probably has bigger and more pressing priorities but If I were him I would be getting some of the minions sharpening their pencils in an effort to head off a dramatic increase in what tenants will have to pay if the trend continues.
I am sure that Boris doesn't need me to tell him that if you create a shortage of anything the price doesn't go down. As a nation we are now in danger of pricing young people out of not only owning a home but renting one as well.
I echo Paul Smith's, CEO of Haart, sentiments when he says 'I urge Boris to relax the taxation against Landlords to encourage more investment into our housing stock'