The proportion of private landlords who reported demand for rental properties has more than tripled since the pandemic, according to the National Residential Landlords Association (NRLA).
The association’s independent research revealed that 71 per cent of landlords reported increased tenant demand in Q3 2023, a record high.
This is an increase from the 65 per cent recorded at the same time last year and the 22 per cent figure in Q3 2019 before Covid lockdown measures were introduced.
Ben Beadle, chief executive of NRLA, said: “Would-be renters face a desperate situation as ever-growing numbers seek access to a dwindling number of available homes.
“The government needs to accept the folly of a tax system that makes investment in holiday lets more sustainable than long term homes to rent.
“We need pro-growth tax measures. This should include ending the stamp duty levy on the purchase of homes to rent out, as well as reversing mortgage interest relief changes which have hit the sector hard.”
Regional disparity
The survey, which was conducted by by BVA-BDRC, also discovered a regional disparity, with the highest levels of demand being in the West Midlands, where 76 per cent of landlords reported increased tenant demand.
This was followed by 75 per cent saying the same in Wales and 74 per cent in the South East (excluding London).
However, despite record demand, 28 per cent of respondents said they plan to cut the number of properties they rent out over the next 12 months.
This contrasts with the 8 per cent of landlords who plan to increase the number they let over the coming year.
Additionally, the association warned that the ongoing imbalance between the demand for, and supply of, private rented housing will continue to erode the purchasing power of tenants.
Crucially, this will put any gains which result from the chancellor’s decision to unfreeze housing benefit rates at risk.
Without measures from the government to support the supply of private rented housing, tenants will "continue to struggle to hold rouge and criminal landlords to account" given the shortage of alternative accommodation across the sector, the association said.
tom.dunstan@ft.com
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