Bloomberg - UK’s Shortage of Rental Properties Will Not Ease in the Near Future
Published by Magnate Assets on
May 2, 2023
According to Bloomberg Intelligence, the UK's rental supply-demand imbalance is likely to worsen in the short-term. Data from Rightmove indicates that the number of available rental properties in London has plummeted by 46% since 2019.
Iwona Hovenko, the real estate analyst at Bloomberg Intelligence, believes the supply-demand gap will only continue to widen. Hovenko notes that private landlords are leaving the sector due to the high taxation, interest rates and the steep costs of bringing their properties up to energy efficiency standards. The shortage of qualified labour and high costs of materials are only making this task more challenging.
Additionally, these same factors are also affecting the supply of new homes. Hovenko also suggests that some potential buyers may be holding off on making a purchase until house prices fall. As a result, the rental market is feeling the strain of increased demand at a time when supply is dwindling.