According to the Royal Institution of Chartered Surveyors (RICS), there is a substantial shortage of properties available to rent by private tenants and it is encouraging the government to play their part and do something about it.
It is being estimated that by the time 2025 is upon us, there will be an additional 1.8 million households that want to rent a property as opposed to purchasing one. This is due no doubt in part to the fact that house prices have been on the increase with many properties being beyond the price at which some people can afford to buy them at.
It is also rather concerning to hear that as many as 86% of landlords are not intending to expand their property investment portfolios during the remainder of 2016. This may be a similar pattern over the next 5 years and that is obviously even more concerning. Another concerning statistic mentioned by RICS is that, since back in May of this year, a fall in the sale of buy to let properties has taken place at 58% of RICS estate agents.
It would appear therefore that a lot more houses are needed for rental. No doubt some of the shortfall could come from existing housing stock here in the UK but also it would be a big help if more new properties could be built that could be made available to prospective landlords to rent out. RICS has suggested that the government could reverse the announcement made a few months ago to the changes in stamp duty that will impact financially on landlords buying investment properties.
If you are a landlord, you will no doubt be watching with interest to see if the government does anything to help the private housing residential rental sector in the next few months. We shall continue to keep our many readers up to date with any relevant developments in respect of the above.