Rents set to rocket by 15%
Because landlords are being squeezed by the government and many are deciding to sell up, rents could rocket over the next five years by 15%, one organisation is warning.
The Royal Institute of Chartered Surveyors (RICS) says letting agents are reporting a drop in the number of rental properties becoming available - they say this has happened now for 21 consecutive months.
The surveyors say that rents will rise slowly over the next year and keep rising for another four years as a government crackdown on buy to let owners means there will be fewer rental homes available.
The organisation's policy manager, Geoff White, said: “The private rented sector situation is giving cause for concern as property supply continues to fall. It appears that the policies on stamp duty and taxes are making it difficult for landlords when the UK needs more homes for rent as many landlords will continue to leave the market.”
Mr White added that the market situation is one most complicated the organisation has seen for some time and there's great cause for concern for the future of the private rental sector.
His fears have been echoed by the chief executive of Arla Propertymark, David Cox, who said: “The combination has started, unsurprisingly, to push landlords from the market. This was predicted and we warned the government and now our fears are being realised and it is renters who are suffering.”
Landlords hit out at criminal record check they didn't need
Meanwhile, landlords in one city have hit out at their council's licensing scheme after they had to pay for a criminal record check they didn't need.
Angry landlords in Nottingham say the scheme is 'shambolic' and they have now launched a petition to have the licensing scheme scrapped.
From 1 August, a new selective licencing scheme will come into effect and landlords who are receiving rent from a property in some parts of the city will need a licence to show the property meets ‘quality and safety standards’.
Plan to drive out rogue landlords
The council says this is part of its plan to drive out rogue landlords and those landlords who cut corners by offering a property for rent with falling ceilings or faulty boilers.
However, landlords say they've had to pay for a criminal record check to be carried out and then be told that this element is no longer part of the licensing patient.
Some landlords are now asking for a refund and say the scheme’s rollout is ‘shambolic’.
One organisation for landlords in the city says there are more 200 who have paid for criminal record checks for no reason, despite being told initially by the council it was necessary.
