Is build-to-rent the answer as cities and towns across the UK see their rental property supply plummet?
- Across several cities and towns in the UK, including Manchester, supply of rental accommodation fell for two months consecutively
- At least 1.8 million more households will be looking to rent by 2025, leaving popular locations in the UK desperate for new rental stock
- Industry insiders believe “It’s time for the government to make build-to-rent a key priority” to help meet demand
The supply of property listed on the market to let has fallen by up to 26% across the UK.
Research by property crowdfunding platform Property Partner shows that four in 10 of major UK towns and cities saw a fall in the volume of homes available to rent in September compared to the previous month.
Most major English cities saw new rental property listings fall, but London bucked the trend and posted a 1.43% rise in September.
Eight out of 10 locations, which saw a drop in new rental listings in August, registered a further decrease in new rental properties for the second consecutive month, owed in part to a fall in the number of rental properties being purchased by investors following the recent tax changes in the sector.
Earlier this month, the Royal Institution of Chartered Surveyors (RICS) warned that the UK is facing a severe shortage of homes to rent, largely because of tax changes for landlords.
At least 1.8 million more households will be looking to rent rather than buy a home by 2025, according to RICS.
Dan Gandesha, CEO of Property Partner, continued: “Like RICS, we believe Britain should be building more homes across all tenure types. Over the past decade, more and more people have moved away from home ownership and become long-term renters.
“It’s time for the new government to make build-to-rent a key priority, encouraging the private sector to build properties for residential letting with incentives for institutional and professional landlords.”