Tenant demand not being met by supply

Research carried out by the National Landlords Association (NLA) has revealed that the demand for tenants is stronger than ever, with 40% of all landlords reporting an increase in tenant demand in the areas that they cover.

Nationwide there is a general increase, or stability in tenant demand, but it does vary regionally. The East of England witnessed the biggest growth with a 48% increase, closely followed by the South West with 45%. The south east and outer London also demonstrated high tenant demand, with 41% and 40% respectively.

Only 6% of landlords surveyed nationwide reported a decline in tenant demand, with the north east the location which topped the list with a 15% decline.

The Government’s planned changes to remove mortgage interest relief for landlords is only set to worsen this supply and demand imbalance, as these changes look set to affect over 600,000 tenancies as landlords question whether they can afford to continue.

“The Government’s planned changes, which will be phased over a period of years, gives landlords effected time to review their finances, but some will still be forced to sell or trade at a loss which is unsustainable and the projected impact will mean that ultimately renters will lose out as a dwindling stock drives up prices and competition for homes,” explains Carolyn Uphill, Chairman of the NLA.