There has been a sharp decline in the number of homes available to rent over the past six years.
Across the UK there has been an 11.6% decline in the available rental stock, since July 2011, according to home.co.uk.
The most dramatic decline has been recorded in Scotland, where the available rental stock has fallen by 34.7%. In Wales there has been a fall of 28.1% over the same period, while stock in the South West have fallen by 26.5%.
Across the UK, seven regions have seen a decline greater than the UK average. In the East Midlands, the number of available homes to rent has fallen by 24.6%, in the South East it is down by 20.8%, 16.7% in the West Midlands and 11.9% in East Anglia.
Only one region across the UK has registered an increase in supply, with the North East recording a significant increase in available rental properties of 33.4%.
While the supply of available properties has seen significant falls across the country, demand from tenants has continued to grow as many people find themselves priced out of homeownership.
Tax changes affecting landlords, including Section 24 reforms to mortgage tax relief and increases in Stamp Duty on second homes, has been partly blamed for the decline, as many landlords consolidate their financial position or are even forced out of the sector completely in order to avoid being hit by heavy tax bills.
Doug Shepard, director of home.co.uk, commented on the findings, saying; “It is ironic that the government’s justification for tax changes in the PRS was to ‘level the playing field’ for wannabe homeowners.
“The result of this barrage of red tape and taxation, at both local and national government levels, has meant that the supply of rental properties has fallen behind demand in most regions thereby driving up rents.”
The results of the home.co.uk study shows how serious the financial pressures on landlords are as a result of tax changes. If you’re a landlord concerned about your financial position as a result of Section 24 and Stamp Duty, contact Landlord Debt Advisory for a consultation.