New data has been released suggesting that things are going to get even worse for tenants who have already seen rent hikes as one in four landlords are planning to sell up over the coming year. (Source: Residential Landlords Association)
Over the past 3 years demand for homes to rent has increased, the RLA said that tenants face a “perfect storm” with the supply of homes to rent set to fall as demand increases.
Of the landlords interviewed 47% of them indicated that they expected to increase rents over the next year, changes to mortgage interest relief which will see landlords taxed on their turnover rather than their profit was cited as the main reason why rents might increase.
With the buy to let market being squeezed so tight it is only a matter of time before landlords come to the realization that investing in buy to let properties is no longer an attractive prospect.
Whilst efforts by the Government to support institutional investment in the sector are welcome, this will remain a drop in the ocean.
Some major positive changes are needed to encourage landlords to invest in the new homes to rent that are so desperately need