Posted on: August 1, 2024
So why are renters struggling to find a rental property?
It is no secret that people who need rental property are finding it increasingly difficult to find suitable property. A decreasing pool of property is resulting in greater demand and rising rents.
The BBC reported on the 15th of May this year that the average time a rental property is marketed before a successful let is 25 days, which is 10 less than the pre pandemic average of 35 days.
Certainly my own experience from Village Properties lettings department is that rental properties that come to market are snapped up and in some cases they have to de-list property to stop being overwhelmed with enquiries.
Many landlords are selling up as interest rates have increased significantly in the last couple of years. This squeezes their profit, or pushes them into a loss situation and as such it is less attractive to maintain ownership. There are also some landlords that are exiting the market having bought a long time ago and now wish to cash in on their investment. But there are few new entrants into the buy to let market due to interest rates and the current taxation regime.
Couple this with the introduction of a potential ban on no fault evictions as well as new EPC legislation and it is no wonder that the rental property pool is shrinking.
So what’s the answer? I think there are three main areas that could address the issue…..
- The new Labour Government have pledged to build 1.5 million homes in the next 5 years, including social housing. This is a bold promise with many stumbling blocks.
- Interest rates could drop, reducing the burden and loss to private landlords.
- And tax breaks, however unlikely could incentivise landlords to hold onto buy to let property.
But for the moment, supply is reducing, demand is at best remaining level, so the problems will continue in the short to medium term.
01/08/2024
The information contained within was correct at the time of publication but is subject to change
Your home may be repossessed if you do not keep up repayments on your mortgage
This is just an overview of the current rental market situation and does not constitute advice. If you require specific mortgage advice, please speak to one of our advisers…….
Craig Power craig.power@villagefs.co.uk
Or Luke Spires luke.spires@villagefs.co.uk
Or call 0118 9410026 or contact us through Facebook
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