RLA PEARL produces a monthly rental index, which brings together data from across the sector to provide insight on the rental market. This includes changes to rental values, house price changes, inflation, buy-to-let market activity.
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.
Over 40 per cent of landlords are less likely to consider renting to someone without a British passport as a result of the Government’s Right to Rent scheme.
More landlords in Cardiff are letting out their properties as short-term holiday lets, making them no longer available for long-term renting following UK Government tax changes. The RLA's research lab, PEARL, has found that the number of Airbnb listings have increased by a massive 259 per cent in Cardiff alone in comparison to last year.
Despite announcements made at the 2017 Budget to Universal Credit, 73 per cent of landlords still lack confidence in the system especially when it comes down to the issue of rent arrears.
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.
Over two thirds of landlords are reluctant to invest in new properties as a result of the Government’s stamp duty levy on additional properties according to our latest research.
The number of house sales drops by 17% in one year, rental growth across the UK has slowed, and buy-to-let mortgage activity remains flat.
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.