With landlords expected to scale back their property portfolios, the success of build-to-rent will be crucial to addressing the undersupply of rented accommodation available in the UK.
- An anticipated decline in buy-to-let investment, with many landlords scaling back their portfolios is revealed in the latest survey carried out by Royal Institute of Chartered Surveyors
- As landlords sell their properties, those looking to rent will be faced with reduced availability of homes in an already undersupplied rental sector
- The success of the build-to-rent is now crucial to meeting tenant demands within Britain’s private rented sector
The shortage of supply within the UK’s rental market could be set to worsen over the medium term, according to the latest Residential Market Survey carried out by the Royal Institute of Chartered Surveyors (RICS).
The survey revealed the recent increase in stamp duty on additional homes, along with forthcoming cuts to tax relief on buy-to-let mortgage investment payments could result in a number of landlords taking the decision to scale back their property portfolios.
Of those polled in the RICS survey, 28% more respondents felt landlords were likely to reduce the size of their portfolios over the next 12 months, while 26% more contributors expected landlords to scale-back their portfolios over the next three years.
With tenant demand continuing to rise, the imbalance between supply and demand within the rental sector would be further strained, driving rents higher and reducing standards for tenants, should the predictions of the RICS survey transpire into reality.
As more landlords move away from buy-to-let investments, the success of build-to-rent will be crucial to resolving the UK’s undersupply of housing and meeting growing tenant demand within the private rental sector.
Jeremy Blackburn, RICS’s Head of Policy, commented: “Our survey demonstrates how vital greater supply is in this sector; we really need to turbo boost ‘build-to-rent’. The government’s move away in the housing white paper from home ownership to rent must be credited. They’ve listened to us on expanding supply not just pumping demand, and on giving institutionalised private rental sector much greater priority alongside owner occupation.”