Private rents increased in Great Britain by 1.4% in the 12 months to November 2017, house prices have increased across the UK by 4.5% and tenant demand is decreasing. What does this mean for the private rented sector?
The current top two political issues on the agenda are Brexit and Housing, with increasing attention being directed to policy changes in the private rented sector (PRS). However, our research identifies that government policies are having unintended consequences that could be making it more difficult for many tenants to find a home to rent.
Without supporting investment, removing tax disincentives (like MIR changes) and encouraging landlords to remain in the sector, there will be a squeeze on prices as supply tumbles. If the Government is truly committed to building more homes, the foundations for investment across all tenures must be put in place.
Our survey findings suggest that around one in five landlords (19 per cent) think that the MIR changes will make them less likely to let to under-35s. More detailed analysis suggests that both the impact of MIR changes and landlord responses to them are likely to vary considerably across different groups.