Landlords Leaving Market Creates A 'Crisis'
Growing numbers of landlords who are exiting the market are creating a housing supply crisis, research reveals.
The findings from the Residential Landlords' Association (RLA) found that 25% of landlords who responded to the survey say that demand for private rental homes grew over the last quarter.
However, 15% say that demand fell over the same period and 41% said they had seen no change.
The RLA's findings also reveal that as more landlords are selling up than are buying, tenant demand is continuing to rise and the association says a rental housing supply crisis is on the way.
The research reveals that over the next year, 31% of landlords say they are planning to sell at least one property - compared with 13% who say they will buy at least one rental home.
Pro-growth measures for the rental sector
The RLA says that pro-growth measures for the rental sector need to be adopted by the government, including the abolition of the stamp duty levy when buying additional homes.
The RLA's policy director, David Smith, said: "Those who argue that a smaller private rental market will be good for tenants who want to buy a home are wrong.
"Government policies are choking off home supply to rent while demand is strong. This will make life difficult and more expensive for those wanting somewhere to live."
He said that without the introduction of a pro-growth policy to help landlords, 'the housing situation will become worse'.
Long tenant deposit delays continue
Meanwhile, it has been revealed that the average time for returning a deposit, regardless of whether the cash is handed to the tenant or landlord, is between 29 and 37 days.
The data has been released by the Ministry of Housing, despite new reforms being put in place to protect tenants and their deposits.
The chair of the AIIC, Danny Zane, says: "It's unbelievable that the deposit protection services still take so long for parties to be financially satisfied."
Delay makes it tougher for a tenant to move
He added that the delay makes it tougher for a tenant to move because they have to raise the money for paying the deposit on a new tenancy.
He said: "Deposit return times of up to 37 days can be crippling for many tenants and that makes life difficult for millions and their families in an age when we want to improve a tenant's life."
The Ministry of Housing is currently working on improving the tenancy deposit returning process with one idea of creating a tenancy passport so the deposit can be transferred between landlords without having to be returned to the tenant.
