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Original poster

Why is there a shortage of property to rent?

137 replies

TwinklingFairyLightz · 08/08/2022 12:25

This seems to be a post pandemic phenomenon. Rental prices are increasing due to a shortage in available properties to rent and there are bidding wars on properties that do come up.

Why is there a sudden shortage? Is it demand ie an increase in people looking to rent or supply ie less available properties?

OP posts:
Coffeesnob11 · 08/08/2022 19:28

I am in rental because I sold my house to move in time for my child to start the same school as his cousins. I have bod on 4 houses for sale and not been successful. I rent privately but would rather not. I find it restrictive and not particularly homely.
I had to wait 4 months to rent and luckily stayed with family in between but it was really hard to find a rental. There was 15 people viewing every rental. A lot of people I know are having to move as their rental is being sold. The estate agents are obstructing them renting a new place as they want their landlord of the house being sold to get rent until the property completes but it means they risk the tenant being stuck as they have nowhere to go.

Original poster
TwinklingFairyLightz · 08/08/2022 19:29

shandon14 · 08/08/2022 19:16

I'm a landlord and often frequent landlord forums where there is a lot of chat about people getting out of the game. Many are doing so for all the reasons listed above - EPC, removal of S21, change to tax. My dad's a landlord and he is selling up - although that's motivated by his age too. I also have a friend who has just sold up.

I think there have been properties on the market - certainly near me there has been a lot of activity, lots of places for sale - and it's now starting to slow. I believe that properties aren't being bought by smaller landlords who want ongoing tenants. Many houses near me are in a bidding war - mainly people wanting to buy it to live there based on what I have heard. I suspect far fewer people are starting out in BTL at the moment or adding properties. Plenty of AirBnB activity - the tax regime for this is a lot better than for ordinary letting.

I don't really care if people bash me for being a landlord. Bit unfair though, you don't get bashed for putting more in your pension or making other investments. I'm a good landlord - follow all the regs, charge a fair rent, these days I self manage and have a good relationship with tenants. I'm just offering a service and like many, I'm an accidental landlord, I rent out my old home in another city and although it's a great investment the reason I do that is because I believe I will move back there some day.

I didn't start the thread to LL bash. I just couldn't understand why there seemed to be bidding wars for both rental properties and properties for sale. It seemed like there was a sudden increase in either people looking to buy or and rent, or a sudden decrease in properties available to rent and buy.

OP posts:
SamphirethePogoingStickerist · 08/08/2022 19:39

Plumtreebob · 08/08/2022 18:22

@SamphirethePogoingStickerist - I see about 150 landlords tax returns a year. They are overwhelmingly in the black. The very few who make a loss it is a short term thing, normally in the first few years. None of them are looking to sell. Of the thousands I have ever seen, I’ve only ever seen 1 have one of the sorts of tenants you’d see on one of those Channel 5 shows. The odds are very much in the landlords favour.

I'm not sure what your point is. My agents have lost a goodly percentage of their landlords this year. National chains to one man bands, they have all lost a lot of properties. Jan - April I would say that about 1/3 of the check outs I completed went on to be sold. For every agent I work with.

The best shitty tenant I met left blood soaked bed sheets on the floor, defrosting food all over the sitting room carpet and blocked me in the upstairs flat when their sofa got stuck in the stairs. They shouted goodbye and left. It took the agent half an hour, with an axe, to free me and the tenant denied every single thing I noted on the check out, including having locked me in, despite making a claim for the sofa that had been destroyed!

Really bad doesn't happen more than once a month or so, but even a half crappy tenant can cost a landlord hundreds of pounds. And I see hundreds of properties a year.

Flip side? Nosy landlords. Landlords with no idea about dilapidation claims. Shabby but not dangerous houses. And God help the tenant if the landlord used to live in the house!!

All of that aside, there really has been significant reduction in long term rentals this year.

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Plumtreebob · 08/08/2022 19:48

@SamphirethePogoingStickerist my point was that from my experience I am not seeing this mass exodus others are speaking of. I was just adding what I am seeing. I am in the SE though with high rents and LLs with a lot of equity in general, that might make a difference.

Lineala · 08/08/2022 20:10

lollipoprainbow · 08/08/2022 18:44

*The population is increasing much faster than the housing stock.

Illegal migration has tripled over the past 4 years, while the government is falling well behind on building (thanks to the rocketing cost of materials and labour shortages).*

This is probably one of the reasons but be prepared to be called racist for saying it.

'Illegal migrants' are under the radar and are highly unlikely to make a difference anywhere except at the very bottom in slum housing with landlords who do none of the compliance required by law.

Lineala · 08/08/2022 20:19

Lineala · 08/08/2022 20:10

'Illegal migrants' are under the radar and are highly unlikely to make a difference anywhere except at the very bottom in slum housing with landlords who do none of the compliance required by law.

Show quote history

And the government doesn't build housing . . . developers/builders/landlords build houses, for profit.

Crikeyalmighty · 08/08/2022 21:26

@lollipoprainbow you cannot rent here unless you have proof of 'right to be here' whether British or non British- maybe they get away with it at the complete slum end but certainly not via agents or vast majority of official landlords - I know because I have to upload passports etc every time

Didyousaysomethingdarling · 13/08/2022 16:53

Plumtreebob · 08/08/2022 18:45

@Zeus44 - pray tell, how else would one discern the profitability of a landlord than rental accounts and tax returns. There aren’t many altruistic landlords around, if any.

There are loads a loads of landlords who haven't increased the rent for years on end. Some don't raise the rents across the whole tenancy. As has been said by lots of MN landlords on previous threads. I haven't raised the rent for 10 years and am now behind market rates to the tune of £1k a month.

Wombat27A · 13/08/2022 17:59

Yep, my favourite tenant was in my property for 20+ years. Her rent went up £15 in that time...there was never a good time to put it up & she looked after the house. Can't complain, it was my pleasure to have her as a tenant.

Zeus44 · 13/08/2022 18:26

Until the government and local authorities realise landlords are needed, there will be high rental costs and continuous shortage of available properties.

As a landlord myself, I have been looking to acquire a few more this year and it’s not worth it. £300k for a 2 bed which rents out at market rate will deliver me 4% yield, I might as well invest in the S&P 500 and get a significant higher return without the hassle.

Do I feel worried about the prospective tenants I’ve not been able to rent to? Yes as I want to offer a product which is in need but it’s the government and local policies who have ruined it.

Wombat27A · 13/08/2022 20:19

That's exactly why I became a landlord. Had a succession of poor experiences as a student & a couple of really good landlords, who made a massive difference to my life at difficult times.

I'm well-qualified, solvent & law-abiding with an ethical stance to rent rises & repairs. Get lumped in with all the shithead, grabby b'stards.

MissyCooperismyShero · 13/08/2022 20:42

I know people who after loss of income re tax changes and some tricky tenants, still have the properties but empty. They may do holiday let's, but generally no rush to get in anyone who's not going to be an outstanding tenant. A couple have moved in a family member, one early 20s son and one elderly parent. Neither probably pay much if anything and the properties are owned out right. Neither of them would be renting if not for these properties. The lad would be living at home and and Nan would be living in Spain, like she still does lots of the time.

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