BRIDGING THE RENTAL STOCK SUPPLY GAP

According to government figures, the supply of private rented housing in England has fallen by almost 260,000 over the past five years. A new report by Capital Economics warns that, without further action, the deficit could begin to snowball. The report, commissioned by the National Residential Landlords Association, observes that Government targets would amount to the need for 340,000 new homes a year across the UK by the middle of the decade.

Given that renting privately is the first tenure for nearly all young people, demand is only set to increase as the 15–24 age-bracket is forecast to grow by 866,000 (11%) between now and 2030. Modelling by Capital Economics suggests that without changes in tax or other policies, the private rented sector stock will decrease by a further 540,000 properties over the next ten years.

RIDING THE STAYCATION WAVE

With international travel restrictions still hampering the plans of many Brits, and the appeal of holidays and short breaks across the UK still very much in vogue, this is a trend which has certainly not escaped the attention of landlords from Land’s End to John o’ Groats.

The rise of the short-term let and holiday let markets has created some appealing opportunities for landlords to generate stronger yields as the ‘staycation’ boom continues to generate heightened demand.

Recent analysis from Moneyfacts shows that there are now 231 buy-to-let mortgages eligible for holiday lets, a 25% increase in the number of available deals available since September 2021. Looking further back, in August 2020, there were just 74 similar deals available.

2021 SEES RECORD NUMBER OF COMPANIES SET UP TO HOLD BUY-TO-LET PROPERTY

Analysis of Company House data from Hamptons showed that there were a total of 47,400 new buy-to-let companies incorporated in 2021 across the UK. This is reported to be almost double the number that were set up in 2017, when it was announced that investors with properties in their personal names would no longer be able to claim mortgage interest as an expense. While the number of buy-to-let companies up and running in the UK passed through the 200,000 mark as the country emerged from the first lockdown, by 2021 this figure has risen to a new total of 269,300.

2021: THE YEAR THAT WAS

2021 has been a hectic year for the industry, and the festive period offers the perfect opportunity to take a breath, eat, drink, be merry and recharge our batteries for what is sure to be an equally busy 2022.

The Stamp Duty Holiday, its subsequent extension and heightened competition across the entire mortgage market resulted in sustained activity levels throughout the year. Although an expected lull has occurred within the mainstream purchase market since the end of September deadline, activity in the buy-to-let and more specialist mortgage markets has remained strong.

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