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Impact on tenants as rental supply falls as landlords sellup

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Impact on tenants as rental supply falls as landlords sellup

Postby Dolphin » Wed May 16, 2018 7:15 pm

There seems to be a lack of consideration for tenants in my view.

I suspect a majority to BTL properties are held in areas of lower socioeconomics, where the prospects of home ownership may be naturally lower, perhaps in areas where there are higher rates of unemployment. That being said, where landlords dispose of their properties in these areas due to adverse tax implications, another family are out of a home looking for somewhere else to live. Their prospects of home ownership may never be possible, and have only the private rented sector to consider. Where there might already be a shortage of available rental housing, at the stage supply outstrips supply, this will drive rents up. Not to mention those landlords remaining in the game will likely need to increase rents anyway to meet increased costs.

All things considered, this tax move will likely create a shortage of rental properties and result in rents being driven higher and higher. The prospects of renters saving for home ownership deposits in the case where they have to sustain higher rents, becomes even more difficult.
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