Because many Buy to Let landlords are leaving the Buy to Let sector, there is an acute shortage of rental properties not just in Leeds, but nationally. We all know what happens when demand exceeds supply – prices rise.

From daily inflation to rising mortgage costs, there is some gloomy news for tenants from RICS who predict that rental costs will rise by 15% this year and beyond.

This lack of available properties means rents are estimated to go up by almost 2 per cent across the UK this year, but RICS said

“the shortfall in the supply pipeline is more visible over the medium term”

With rents predicted to rise 15 per cent by the middle of 2023.

There are marked regional differences though – East Anglia is expected to see the highest rises with the north east and Yorkshire and Humber seeing the lowest rises.

What’s caused this, along with restricted supply?

Firstly, there’s been major tax changes in the Buy to Let sector.

Secondly, stamp duty on second homes has seen increases in recent years.

Thirdly, the Build to Rent programmes in place across much of the country are not progressing quickly enough.

Simon Rubinsohn, RICS chief economist, said:

“The impact of recent and ongoing tax changes is clearly having a material impact on the buy to let sector as intended. The risk, as we have highlighted previously, is that a reduced pipeline of supply will gradually feed through into higher rents in the absence of either a significant uplift in the build to rent programme or government funded social housing.”

In London, the problems are even more acute – with news just recently that many primary schools there are becoming unviable with falling pupil numbers as tenants leave the capital.

In Leeds, there is no obvious shortage of rental properties. There are in fact almost 4000 properties to let across the full spectrum from studio flats, house shares up to executive homes.

What we’re seeing at Hogan’s too is that demand for rental properties is high and we have many portfolio landlords who are staying in the business for the long haul.

15% rises this year, with more predicted, are just that – predictions. They are skewed too by the figures from East Anglia and London.

Buy to Let remains an attractive proposition for landlords and if you need help sourcing properties, contact our team today.