Rented home supply drops sharply as landlords flee the PRS

This is the clearest result of the policy makers and the Shelter likes working hard to "help the Tenants"

No wonder why many politician think "there is nothing to learn with the continent...we can do better" Is a tragedy for all and in particular for the renters..

I would love to see that data in this.

One possible reason is that tenants are staying in their current places longer, thus less new instructions.

English housing survey certainly suggests that.

Reply to the comment left by The Forever Tenant at 24/01/2023 - 16:21
Then all good so far !!!!

Nothing to worry about from other "forever Tenant's" complain...

If they cannot find suitable to rent stay longer with mom & dad...jolly jolly !!!

The councils can go after mam & dad house to licence and inspects !!!

HIIII HOOO

I just accepted an offer on one of the houses in my BTL portolio today. I have owned this one for 17 years. It is immaculate. I did advertise it for reletting and had 30 enquiries in a week, but I didn't feel I could trust a single applicant.
I have been a landlord for 27 years with several houses in the Greater London area and I now have zero confidence as a landlord. I spend my life feeling like I have probably broken some rule or other, or am about to be hit with yet another unnecessary bill and I've had enough..
As an example, I recently tried to evict tenants who had paid erratically for 10 years, were 5k in arrears and had basically wrecked the house and gaden.
I served my s21 last Feb which took me 2 days to compile to ensure that it was perfect, in order to have a quiet life.
The tenants filed illiterate irrelevant lies as a defence and for some unknown reason the court decided on the basis of their submission that the case had to go to hearing. I got my hearing last Friday and within 10 minutes I had my possession order. The judge said she didn't understand why there was a hearing. Well neither did I and that's all fine, but the last 11 months of these tenants that the system has forced on my family has been hellish. The whole system is rigged against landlords now and I can't get out fast enough. Of course those tenants almost certainly won't leave on a possession order either, so it will be well over a year to get bad tenants out. It's impossible to function with risk like that on half million pound plus assets
Now maybe the PRS doesn't need me. I mean all I have done for 27 years is tried hard to provide decent accommodation at or below market prices. But one thing I do know is that I don't need the PRS. I have a very nice family house already and I can pull a few million out of the PRS and do other stuff with it where I won't be treated like a criminal.

Reply to the comment left by JamesB at 24/01/2023 - 18:21
Good luck to you James I have been BTL for 24 years but I decided to invest mostly in flats for single / couple only. Has not been any trouble for many years but now selective licencing in is my area. I feel like you now wondering what rule I have broken and what penalty I will get after an inspection.

Was it a HMO house sold to another LL or owner occupier? I sold my only Additional HMO 4 bed flat in 2020 and was glad to rid too as the quality of the tenants got worse and troublesome as during covid they kept asking for rent reductions and being late on rent. I was happy the day they left without me using a S21.

Reply to the comment left by JamesB at 24/01/2023 - 18:21
I completely understand and agree with JamesB, as I am considering my option myself and will be deciding pretty soon.

I feel like I am carrying 2/3 of risks to loss and
only 1/3 of possibility to benefit... is a terrible feeling.

Enjoy the befit of your hard work James !!

'Rented home supply drops'

I'm just presenting some facts that I regularly churn quietly in my own mind ... I'm not going anywhere in particular with this. I'm just simply trying to understand.

The population is increase 6.3% (3.5m) in the 10 years since 2011 (ONS data) - which is about 350k people per year.

https://www.ons.gov.uk/peoplepopulationandcommunity/populationandmigration/populationestimates

Presumably they don't all want a house each.

Completions of dometic properties :

2002 - 2003 136,522
2003 - 2004 143,672
2004 - 2005 153,771
2005 - 2006 159,127
2006 - 2007 161,463
2007 - 2008 177,307
2008 - 2009 148,916
2009 - 2010 125,726
2010 - 2011 106,959
2011 - 2012 113,247
2012 - 2013 115,206
2013 - 2014 109,241
2014 - 2015 117,620
2015 - 2016 141,976
2016 - 2017 141,855
2017 - 2018 162,120
2018 - 2019 164,930
2019 - 2020 177,931
2020 - 2021 147,247
2021 - 2022 175,701
2022 - 2023

Source:

https://www.gov.uk/government/statistics/housing-supply-indicators-of-new-supply-england-april-to-june-2022

The above figures are lower than the 'key statistics' presenting 'net additional dwellings' :

2021-2022 : 232,170
2020-2021 : 216,490
2019-2020 : 195,036

The 2019-2020 derived by me by considering the statement that the 2020-2021 figure was an 11% rise on the previous year.

Source :

https://www.gov.uk/government/statistics/housing-supply-indicators-of-new-supply-england-april-to-june-2022/housing-supply-indicators-of-new-supply-england-april-to-june-2022

(I need to understand why the two sets of figures are different)

Adding years 2011-2021 together :

1,567,074 m completions

' Seasonally adjusted trends in quarterly building control reported new build dwelling starts and completions, England'

Meaning population increase to completion ratio of 2:1 ish.

Then I repeat in my own mind :

Presumably they don't all want a house each?

And then I add the following :

When a LL sells a property (as a consequence of sequential Government's bashing of said LL), the property does not just 'disappear'.

Logically, if it sold, it is bought. But that doen't change the number of people in need of housing.

Logically, if a LL buys new build to rent, then they are available to rent.

This is more than a hint that there are additional significant factors.

For example, I know that locally to me the mix of housing prevents older retirees from downsizing. Or conversely, a downsizing retiree trumps a first time buyer. The type of housing matters.

Locations in England where station car parking is expensive and a menace to locals with those using it working in London or other major towns/cities. Local's property values being 'off the chart' price wise as a conseqence of a station. This suggests (unsurprisingly) we go where the work is and a property in the wrong place without transport infrastructure is relatively worthless.

I ponder this geographical location conundrum. A quick search on Zoopla (others are available) with location set as 'England' and price Low to High - properties start at £5k. Many factors including more than 45mins from a centre of employment, no significant local industry to affect Goverment decision making and consequent minimal transport infrastructure investment, legacy (defunct) industries, ... a knotty problem.

With shallow research I conclude that houses which are available are likely in the wrong place. Leaving aside the EPC 'quality' of UK housing stock, 653,000 vacant dwellings in England on 4 October 2021.

Source :

https://assets.publishing.service.gov.uk/government/uploads/system/uploads/attachment_data/file/1074411/Dwelling_Stock_Estimates_31_March_2021.pdf

Demand continues to outstrip supply. Viewing numbers at record levels. But not for a £5k mid terrace.

Perhaps the UK Ltd could invest in BritishVolt and help it achieve it's aim of creating 3000 new jobs rather than allowing it to be rescued and ownership going elsewhere ...

https://www.bbc.co.uk/news/uk-england-tyne-64404889

Hamish

Is the government losing a significant amount of tax due to landlords selling up to owner occupiers.
Also, as interest rates rise the 20% mortgage interest allowance increases reducing tax paid.

Is tax from landlords a significant income for the Treasury or does it cost more to administer than it gains?