The UK will need more buy to let landlords in order to meet growing demand due to population growth and changes in the housing market.
According to the latest forecast from the Office of National Statistics, the UK population is set to grow by 8.4 million people over the next 22 years from 65.6 million recorded last year, eventually reaching 74 million people in 2039.
This growth in population is increasing demand for housing much faster than supply is being built, while at the same time wages have stagnated, leaving many people, especially first time buyers, unable to raise the finances to purchase a property.
At the same time, a new survey of 2,000 UK adults by LetBritain has revealed that 39% of adults lack the money to buy a suitable property and have no choice but to rent their home. This figures increases to 49% of people living in London.
According to the survey, more than a quarter, 27%, of renters are considering investing in a buy to let property in a cheaper area compared to where they live in order to supplement their income.
This growing demand for rental properties and the interest on the part of renters to themselves make buy to let investments make the recent reforms to the private rented sector seem all the more perverse.
With Section 24 changes to mortgage interest tax relief, the hike in Stamp Duty, the cap on tenants’ deposits and the ban on letting agents’ fees all threatening to push many landlords out of the sector, there is a growing danger that the supply of rental properties could be reduced at exactly the time it is most needed.
Jonathan Stephens, managing director of Surrenden Invest, said; “Whilst it’s wonderful that we can all enjoy a longer life and a larger population can positively impact the size and capability of those of working age, it does also increase pressures on basic requirements such as housing, namely, where will we all live?
“With population forecasts such as these, it would seem wise for landlord investors to be encouraged, not penalised through Stamp Duty reforms and tax hikes as we have seen over the past 18 months.”
If you're a landlord concerned about the impact recent reforms to the buy to let sector are having on your properties or you have property debt worries, contact Landlord Debt Advisory on 0161 222 4311 or go online to landlorddebtadvisory.com.