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The demand for rental properties has significantly surged, with the proportion of private landlords reporting an increase more than tripling compared to pre-COVID levels. According to independent research conducted for the National Residential Landlords Association (NRLA), a record high of 71% of landlords reported heightened tenant demand in Q3 2023, up from 65% the previous year and 22% in Q3 2019 before the onset of COVID lockdown measures.
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West Midlands Leads with 76% Surge in Tenant Demand
The survey, carried out by research consultancy BVA-BDRC, highlighted that the West Midlands leads in demand, with 76% of landlords reporting increased tenant interest, followed by 75% in Wales and 74% in the South East (excluding London).
Property Sales Surge as Landlords Adapt to Market Dynamics
Despite the unprecedented demand, 12% of landlords opted to sell properties in Q3 2023, more than double the 5% who purchased during the same period. Additionally, 28% of respondents expressed intentions to reduce the number of properties they rent out in the next 12 months, contrasting with the 8% planning to increase their rental portfolio.
NRLA Urges Pro-Growth Measures for Property Investors
The NRLA warns of an ongoing imbalance between rental property demand and supply, emphasising potential consequences for tenants' purchasing power and the risk to gains resulting from the Chancellor's decision to unfreeze housing benefit rates.
NRLA Chief Advocates Stamp Duty Relief for Property Investments
Ben Beadle, Chief Executive of the NRLA, underscores the urgent need for pro-growth tax measures. He suggests ending the stamp duty levy on properties for rent and reversing mortgage interest relief changes, highlighting research predicting that removing the 3-percentage point stamp duty levy on additional property purchases could result in nearly 900,000 new private rented properties in the UK over the next decade, with a projected £10 billion boost to Treasury revenue.
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To discover how you can take advantage of the thriving UK property market, get in touch with one of our knowledgeable property specialists today.
