The Royal Institution of Chartered Surveyors has added its voice to the chorus of concern over landlords quitting the private sector
In its latest market snapshot RICS says the long-anticipated Renters Reform Bill will increase pressure on landlords and may force even more to quit.
The warning follows hot on the heels of a survey by the National Residential Landlords Association saying that in the first quarter of this year some 33 per cent of private landlords in England and Wales said they planned to downsize.
This was up from 20 per cent the same time last year.
Meanwhile, only 10 per cent of landlords plan to increase the number of properties they rent out.
The RICS predicts that with demand continuing to far outstrip supply, rents will rise still further over the next few months.
Samuel Rees, RICS senior public affairs officer, says: “Demand for rental homes remains high, but stock remains low, and landlords are increasingly exiting the market – which is translating into higher rents.
“The government’s [Bill] will increase pressure on landlords and may force even more to exit the market.
“The government needs to ensure that proposed reforms to the rental market are delivered in such a way that it increases support for landlords and tenants and maintains and grows supply.”
According to the NRLA research 67 per cent of landlords say demand for properties from prospective tenants is increasing.
And in every region of England and Wales more than 70 per cent of landlords say demand has increased.
The NRLA is warning that the supply crisis is set to deepen further without action by ministers. It is call for the government to undertake a review of the impact of tax rises on the sector and develop new, pro-growth policies.
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