UK faces 1.8 million “critical rental shortage” by 2025, according to the Royal Institute of Chartered Surveyors.
A report from the Royal Institute of Chartered Surveyors (Rics) urges ministers to focus more on the rental sector, after revealing the UK will face a 1.8 million shortage of rental homes by 2025, if action is not taken.
Following the years of house price growth and increasingly unaffordable housing, Rics has said that 1.8 million more households will be looking to rent by 2025 as a result.
New figures reveal that 86% of landlords have no plans to increase their rental portfolios this year, with Rics forecasting that this trend will continue for the next five years, causing the shortfall in private rented sector homes.
Sales of buy-to-let properties have fallen steeply since April,when stamp duty for investors and second home buyers increased by 3%, with the report claiming that the changes to discourage multiple-home ownership had effectively killed off activity.
The study said: “RICS is urging the Prime Minister to abandon David Cameron’s previous home ownership focus and reverse April’s Stamp Duty measures in order to address short term rental supply issues.
“However, they are recommending that Government takes a much bolder long-term approach and pioneers a new build-to-rent sector, with the private sector encouraged to build properties specifically for residential letting.
“It would like to see pension funds incentivised with tax breaks to build large scale rental properties with affordable elements. Additionally, local authorities holding brownfields sites should be encouraged to release land for such properties.”
The report was released just 24 hours after the Government announced a £5Bn plan to help address the country’s housing shortage.
Chancellor Philip Hammond said: “There has been a housing shortage in this country for decades, and the Government is determined to take action to tackle it.
“We’ll use all the tools at our disposal to accelerate house building and ensure that over time, housing becomes more affordable.”
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