A question I keep getting asked is, why is it so difficult to find a rental property at the moment?
The UK rental market has seen a significant rise in demand for rental properties in recent years and we are seeing this massively in Crawley. However, there is a severe shortage of rental properties available, which has resulted in high rental costs and difficulties for renters in finding suitable accommodation. In this article, we will explore the reasons behind the scarcity of rental properties available to let in the UK.
1. High Demand for Rental Properties
One of the main reasons for the shortage of rental properties is the high demand for them. A growing population, urbanization, and the increasing number of people living alone or in smaller households have all contributed to this. The demand for rental properties has also been fuelled by the difficulties that first-time buyers face in getting onto the property ladder due to rising property prices and stricter mortgage lending criteria.
2. Lack of Incentives for Landlords
Another factor that has contributed to the scarcity of rental properties in the UK is the lack of incentives for landlords to invest in the rental market. For instance, there has been a reduction in tax relief for buy-to-let landlords, which has made it less attractive to invest in rental properties. This has led to a decrease in the number of new landlords entering the market, resulting in a shortage of rental properties.
3. Restrictions on Property Development
Restrictions on property development have also contributed to the shortage of rental properties in the UK. Planning permission processes can be lengthy and costly, and there are often restrictions on building in certain areas. This has made it difficult for developers to build new rental properties in areas where there is high demand, resulting in a scarcity of rental properties.
4. Short-Term Lets and Airbnb
The rise of short-term lets and Airbnb has also impacted the availability of rental properties. Landlords may find it more profitable to rent out their properties on a short-term basis rather than to long-term tenants. This has led to a decrease in the number of rental properties available for long-term lets.
5. COVID-19 Pandemic
Finally, the COVID-19 pandemic has also contributed to the scarcity of rental properties. The pandemic has caused many landlords to exit the rental market, either due to financial difficulties or because they have decided to sell their properties. Additionally, the pandemic has made it difficult for tenants to move house, resulting in fewer properties becoming available for rent.
In conclusion, the shortage of rental properties available to let in the UK is caused by a combination of factors, including high demand, lack of incentives for landlords, restrictions on property development, short-term lets, and the COVID-19 pandemic. Addressing these issues will be key to increasing the supply of rental properties and ensuring that renters can find affordable and suitable accommodation.
If you have a rental property you are thinking about letting call Ben on 01293 552 388