Industry body urges support for landlords rather than punishment to fix rental crisis

Incentivising, rather than penalising good landlords, is the key to beating supply and demand issues, says Propertymark.

According to Propertymark’s Housing Insight report, demand continues to outstrip supply with the average number of applicants per member branch still hitting around seven people for each available property.

Propertymark members also told the report legislative changes are causing huge uncertainty in the private rented sector.

Lack of supply against a backdrop of growing demand

Nathan Emerson, chief executive officer, of Propertymark, said: “In the lettings market, rent levels in some areas across the country are being forced to drop as many renters are being pushed to their limits when it comes to long-term affordability.

“With the ongoing legislative and regulatory pressures placed on investors, this is causing a lack of supply against a backdrop of growing demand.

“This long-standing issue needs to be addressed to provide a sustainable and effective private rented sector, and this can only be achieved by incentivising rather than penalising good landlords who provide crucial homes to the nation.”

A Propertymark member from the South West also claimed that uncertainty in the private rented sector is disrupting supply and demand.

The member told the report: “The full impact of the Renters’ Rights Bill is still unknown due to uncertainty around its costs and implementation timeline.”

According to the Propertymark Housing Insight report, 33% of agents reported rents had increased during the end of last year.

Stamp duty changes

In the residential sales market, Propertymark’s housing insight report reveals the winter months tend to see a dip in buyer activity.

The report reveals a decline in the average number of viewings per available property, which fell to 1.5 in December 2024. In line with seasonal trends, an average of 7.8 homes per member branch were placed for sale.

However, Mr Emerson suggests that upcoming stamp duty changes in April could drive a surge in buyer demand during the winter months.

He said: “Winter is historically quieter in the sales market as people hunker down.

“However, with the announcement that many will see increases in their Stamp Duty bill from April 2025, which will cost the average buyer in some cases, thousands of extra pounds, we expect there to be a noticeable shift in activity moving into 2025.”

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