Drastic Fall in Homes to Rent in UK
The number of homes to rent in the UK’s private rented sector has fallen considerably over the last six years with a decline of 11.6% with Scotland seeing a fall of 34.7%, the latest research shows.
The fall in Scotland between July 2011 and June 2017 is described as a major concern that is making it harder for people finding a home to rent, according to the report.
The data also shows that over the same period the number of homes for rent in Wales has fallen by 28.1% and in total, seven out of 11 regions saw a fall in excess of the UK wide average.
Numbers fell by 24.6% in the East Midlands, by 20.8% in the South East, by 16.7% in the West Midlands, by 16.5% in the South West and by 11.9% in East Anglia. Areas seeing less of a decline included Yorkshire and Humberside, down by 5.5%, the North West down by 8.5% and Greater London down by 3.9%.
Just one area, the North East, saw a rise in supply, bucking the national trend with an increase of 33.4% in available property to rent. However, the report said that this regional property market has stagnated ever since values plunged after the credit crunch and many vendors resorted to letting out their properties rather than sell at a loss.
The report suggests that demand is rising as a whole generation simply cannot afford to buy and have no choice but to remain in the rental market while recent legislative changes in the buy to let sector means that landlords are selling up or downsizing their portfolios simply to avoid making a loss. This is resulting in falling supply and those that remain in the sector are forced to raise their rents.
Among areas with the largest fall in supply, Wales has seen rents increase by a demand driven 11.3% over the last year and, during the same period, Yorkshire has seen rents rise by 8.4%, the report’s data shows.