Rents Will Rise In 2020 As Supply Contracts
An overwhelming proportion of letting agents – 84 per cent – say rents will rise next year, well up on the 65 per cent saying the same thing 12 months ago.
The figure comes from the Association of Residential Letting Agents which adds that more than three-fifths of members believe demand will continue to rise and rents will rise.
However, 68 per cent think the number of landlords operating in the private rented sector will decline next year, as they are driven out by rising costs and higher taxes – the same number believe taxes will rise again in 2020.
David Cox, chief executive at ARLA Propertymark, says: “For far too long, successive governments of all political persuasions have passed significant amounts of complex legislation for landlords.
“As a result, much of this year has dampened landlords’ appetites to invest and expand their portfolios, with many consolidating their assets, or choosing to step away from the sector altogether.
“This has impacted tenants most, who have restricted supply and have been faced with less choice and paying higher rents.
“Looking ahead to 2020, we hope the government recognises the importance of increasing supply for tenants and uses it as an opportunity to make the market more attractive for landlords.
“This will encourage more landlords back into the market as well as ensure that tenants, including those who are most vulnerable, are not at a disadvantage in being able to find a suitable and affordable home to rent.
“Change should make the private rental sector fairer for all involved, and not penalise those landlords who provide high quality, affordable housing for thousands of tenants.
“Propertymark’s election manifesto outlines a number of urgent housing reforms we hope the new government will take forward to improve the sector, particularly regulating property agents through the recommendations of RoPA– the Regulation of Property Agents working group.”