Cruel Truth, or Uncomfortable Delusion?

This week, worries about the Private Rental Sector continue to headline in the Press; rental stock shortages, Landlords selling-up, tax changes and a new Housing Emergency (lack of stock) declared in yet another Council (Scotland this week). All very eye-catching. So we have continuing – and new – Housing Emergencies, an apparent diminishment of stock, housing targets that won’t be met anytime soon even with the political will and Build to Rent players removing programmes from major cities due to over-regulation. Can things get any worse, or is the current situation unfolding such that they can they only get better?

Rental Stock Shortage may run into 2025. The rental stock shortage in the UK is expected to continue into 2025 due to a lack of new investment by private landlords – despite a slight increase in supply in the short-term. Zoopla reports that demand remains high, driven by the unaffordability of homeownership and limited affordable housing options – especially in southern England. Rental inflation is slowing, but rents are still rising, with some areas seeing annual rent increases above 10%. Proposed government reforms and potential tax changes may further reduce the rental stock, worsening the situation according to Landlord Today.

UTILITY OF THE WEEK (Part 1 of 3!). Energy Operators. Know who your energy operator is? It isn’t the company you pay bills to, it’s the company who manages and maintains the physical network. So if there’s a problem with the actual physical stuff (power cuts / malfunctions), or you are thinking of making changes, it may in some cases be helpful to go direct to them first, rather than your Gas or Electricity supplier (the company you pay your bills to).

Tenants Being Hit Hard as some Landlords Exit. A recent report suggests that renters are being hit hardest as landlords sell off properties ahead of a potential capital gains tax hike. Many amateur and non-corporate landlords are exiting the market due to financial pressures – including expected tax increases and regulatory changes. This has created a rental stock shortage, pushing up demand and rent prices – leaving renters vulnerable to even higher costs as availability decreases. The potential hike in capital gains tax, speculated to reach up to 45%, is contributing to the sell-off, further exacerbating the challenges for both renters and landlords.

Another Council Declares a Housing Emergency. In the Press, East Renfrewshire has become the latest UK Council (and the 12th Scottish Council) to declare a housing emergency – due to rising homelessness and limited housing options. Homeless applications have surged by 53%, and nearly 200 households are in temporary accommodation. The council has been working hard to alleviate this, and plans to prioritise housing for homeless households – increasing lets to 70% for existing stock. This emergency highlights the critical housing shortage and homelessness issues in many regions of the UK.

Who are M2P? Married2Property are a family-run property company that aims to build social good through property.

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