UK PRS experiencing shortage of stock after rental supply drops 15%

UK PRS experiencing shortage of stock after rental supply drops 15%

The private rented sector experienced a 15% drop in rental stock across the UK, with the sector needing to be professionalised to provide adequate accommodation to meet demand.


  • Rental stock across the UK dropped by 15% in May, with over 90% of towns and cities across the nation recording a fall
  • Due to increased demand per rental property, rental costs are expected to rise particularly in areas with an extreme shortage of stock
  • Could build-to-rent help to professionalise the PRS and provide high quality accommodation for the increasing number who choose to rent?

New rental properties listed in May by UK landlords fell by 15.4%.

Some 91% of towns and cities recorded a fall in supply compared to the previous month, new research by crowdfunding platform Property Partner shows.

A factor influencing much of the decline is the rush of landlords putting rental properties on the market in April ahead of stamp duty changes, according to the firm’s report.

It also shows that new listings fell so far in many areas of the country in May that they actually dropped substantially below March levels, before the 3% stamp duty surcharge for additional homes came into force.

“But April’s stamp duty changes are just the first in a series of additional costs on traditional buy-to-let. In the longer term, the private rented sector must be professionalised, to provide enough good quality homes at rents they can afford,” Dan Gandesha, Chief Executive Officer of Property Partner, stated.

It’s likely that rents could increase as landlords pass on additional purchase costs to tenants and a lack of available properties would also force more tenants into accepting poorer quality accommodation, particularly in areas with an acute shortage of stock.

Over 50% of 20 to 39-year-olds will be renting by 2025, with 250,000 new homes needed every year to meet demand. Build-to-rent, a sector that Knight Frank estimate could be worth £50 billion by 2020, fulfils the needs of the modern tenant and helps to professionalise the private rented sector.

Counting for only 2% of the private rented sector currently, there has never been a more prudent time for build-to-rent to help meet the needs of a growing private rented sector and property investors across the country.

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