The landlord body examined research by Pegasus Insight and found that almost eight in 10 or 79% of landlords reported that the demand for private rented housing was strong in Q3 2024.
The data indicated that landlords who let property in the South East experienced the highest levels of demand, with 84% saying it was strong in Q3 2024. By contrast, the figures revealed that demand for private rented accommodation was lowest in the West Midlands.
Despite this trend, across England and Wales, 19% of landlords said they sold property over the previous 12 months – more than double the 8% who purchased properties over the same period.
Looking ahead over the next 12 months, 41% of landlords said they plan to sell at least some rental properties, compared to just 6% who said they would buy.
The NRLA warned that, for the vast majority of tenants, landlords selling properties spells bad news. As it stands, only one in eight renters can afford to purchase a home in the area in which they currently live, according to Oxford Economics.
The NRLA said the situation will be “compounded by decisions made in the Budget [that] will further stifle supply in the rental market”.
From 1 April 2025, the stamp duty threshold will drop from £425,000 to £300,000 for first-time buyers. Meanwhile, mortgage rates are expected to remain higher for longer than expected, according to the Office for Budget Responsibility (OBR).
‘There are not enough homes to rent’
The NRLA said the lack of housing in the rental market will be felt hardest by those in receipt of housing benefits who face the prospect of their support for housing costs being frozen from next year.
Ben Beadle, NRLA’s chief executive, said: “Tenants the length and breadth of the country know that there are not enough homes to rent. Rather than seeking to tackle it, the Government is instead doubling down on policies that have caused the chasm between supply and demand to widen in the first place.
“Whilst landlords selling up might benefit a minority of tenants in a position to afford a home of their own, the vast majority will face a growing struggle to access rental homes.
“It’s time for a change of course. We need policies to support the provision of more decent-quality homes for private rent alongside all other tenures.”
