RICS: Vanishing landlords pile on pressure for renters

Sarah Coles, senior personal finance analyst at Hargreaves Lansdown, comments on the publication of the RICS Residential Market Survey for December, showing vanishing landlords pile on pressure for renters.

Sarah Coles says:

“Vanishing landlords are piling on the pressure for renters. As demand expands and supply shrinks, rents are going through the roof, and it couldn’t come at a worse time.

“Agents reported that the number of prospective tenants continues to rise, while the number of landlords dwindles. Tax treatment when they buy, make rental income and when they sell are all persuading landlords that there are more tax-efficient ways to invest their money. They’re also taking advantage of price rises since the onset of the pandemic to cash in. Others have moved to the short-term lettings market to take advantage of the boom in domestic holidays, and the higher rents available on a weekly or nightly basis.

“This means rents are on the rise again, and the survey respondents expect significant increases across the UK. The HomeLet Rental Index shows the average monthly rent is up 8.3% in a year to £1,060, and rises in some parts of the country are in double-figures. This was reflected by one agent’s comments in the RICS report that said they can add 15% to current rents and easily find tenants.

“Given that rent already swallows a third of the income of renters, this could cause real hardship for those forced to hike rental payments. And at a time when the price of energy, petrol and food is rising dramatically, higher rents are the last thing they need.”

Kindly shared by Hargreaves Lansdown

Main photo courtesy of Pixabay