According to the National Residential Landlords Association (NRLA), in Q4 2023, 63% of landlords said that they had seen heightened demand from tenants.
This is higher than just a quarter of landlords who reported increased tenant demand in Q4 2019.
NRLA said that demand for private housing will continue to rise, with UCAS projections indicating that there could be a million applicants for higher education in 2030, which would have ramifications for student lets.
Net migration flows are likely to settle at 245,000 per year by 2026 to 2027, based on the Office for Budget Responsibility, as migrants are three times more likely to be in private rented accommodation than the UK-born population.
Landlords more likely to sell than invest
The research also shows that landlords are far more likely to sell rather than invest in new properties to rent, with 11% planning to grow the number of homes they let and 30% planning to reduce the number they rent.
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However, last year, the majority of residential buy-to-let (BTL) landlords grew their property portfolios.
The NRLA is calling on the Chancellor to “scrap damaging tax hikes that cause misery for tenants”.
This includes an end to the 3% stamp duty levy on the purchase of homes to let, and this could lead to almost 900,000 new private rented homes being made available across the UK in the next 10 years, according to Capital Economics.
The cut would also lead to a £10bn boost to Treasury revenue through increased income and corporation tax receipts.
Ben Beadle, chief executive of the NRLA, said: “The demand for private rented housing is only set to grow. As it does, would-be tenants will face the reality that there are not enough homes to meet their needs. This is a result of deliberate efforts using the tax system to dampen supply.
“The country needs more of every type of housing, and that has to include new homes for private rent. The quicker the Government takes this into account, the sooner we can relieve the struggles renters face when finding a place to call home.”
