Housing Market Will Not Cope With Lifetime Renters
An independent letting agency has called on the government to take necessary action in the housing market which will be unable to cope with the explosion of lifetime renters.
The agency which manages more than 5,000 properties, lays the blame of the ongoing crisis on three main factors.
The decline in numbers of new-build properties, in many cases overpriced, the declining social housing supply and the static rental sector due to the government’s anti-landlord stance regulations. Lifetime Renters choices for ‘homes’ will be limited by the low amount of housing stock in comparison to increasing demand from all age groups.
The agency found that during June there were less BTL mortgages taken out than in June 2017, which once again shows that many landlords are considering leaving the sector and or, are just not interested in adding to their portfolios.
The managing director of the agency, DJ Alexander, said:”The market has become much tougher in recent years with changes to affordability, access to finance, and a reduction in the tax benefits of property investment.
“The result is potentially a fall in the number of private rental properties available although this will be different across the UK with some rental markets stronger than others.”
“Therefore, many Lifetime Renters, of whom there are a growing number in their thirties and forties, may find their choice limited by a smaller marketplace.”
The agency also backs up its arguments by stating that the English Housing Survey shows there is an increase in middle aged people wishing to rent homes, with owner occupancy levels falling.
“With a growing number of Lifetime Renters emerging there is going to be an increasing need for more social housing, more private renting, and more affordable homes across the country,” says Alexander.
“The government and local authorities need to work together with the private sector to ensure that we have a sufficient housing stock to serve the changing needs of the UK population.
“This means freeing up more land in areas where demand is high for property development, a steady and continuing programme of social house building, the encouragement of the private sector to build more homes in areas of greatest need, and the encouragement of a strong and vibrant private rented sector.”
As with other sector agencies and trade bodies, Alexander says that because of the ever changing property market conditions and regulations many ‘accidental’ landlords will choose to leave the sector.
He believes that there may well be ‘a new breed of entrepreneurial, organised, and well-funded landlords emerging’ in the next few years.