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Property News > Supply of Home to Rent Homes in Britain Fell at Start of 2018
Supply of Home to Rent Homes in Britain Fell at Start of 2018
The focus on the Government is to get people on the property ladder and they’ve taken measures to make it easier. One of the other parts of the housing sector that they shouldn’t ignore though is the homes to rent. To emphasise this fact, it was revealed that while demand from prospective renters is rising, the number of properties available fell by 8% from December to January.This was revealed in a new survey of letting agents and could be worrying news. With rent rises also being an issue, things in 2018 aren’t looking too good for renters. In a new report by the Association of Residential Letting Agents it was revealed that there were 184 rental properties per member agent in January 2018, which is down from 200 in December. The last time it was this low was in October 2018, which was 182.January saw a rise in the number of people looking for rental properties and this caused an issue as the gap between supply and demand is now rising. To put the increase in prospective renters into perspective, there are 70 registered per branch in January, compared to the 59 that were registered in December.With this disparity between prospective renters and actual properties available, it does show that an issue is being created that needs fixing. While the Government may be focusing on getting the number of affordable properties up, they don’t seem to be doing much for the buy to rent market and this could create more of a problem if the gap between supply and demand continues to grow. It looks like the Government needs to help landlords find new properties, if the housing crisis is going to be handled in a competent way.The issue of rental price is also something that may become an issue in 2018. One interesting thing to notice though is that year-on-year the rental price has actually gone down. In 2017, 23% of renters saw an increase in rent, with 30% seeing an increase in January 2016.In bad news for renters, it looks like 2018 is not going to be a good year. With housing stock running low, focus being on getting people on the property ladder and supply not meeting demand, then something needs to be done to help promote rental property building and find the supply needed for the prospective tenants.There needs to be a look at rent rises and how hard these are being on tenants, especially those on low income. If stocks don’t increase, then no matter how many affordable homes are put up for sale over the next few years, the housing crisis will not be fixed as easily as the Government seems to hope it should be.