The Government must urgently deliver 1.8m new rental homes for UK families, warns the Royal Institution of Chartered Surveyors (RICS), as new figures show a sharp drop in the number of available properties.

With rising house prices making home ownership increasingly unaffordable, it is predicted that by 2025, 1.8m more households will be looking to rent, rather than buy. However, new RICS figures show that 86% of landlords have no plans to increase their rental portfolio this year – with that trend set to remain for the next five years. Additionally, 58% of RICS estate agents have reported a drop in buy-to-let sales since May.

The number of UK households renting property doubled from 2.3m in 2001 to 5.4m in 2014. However, earlier this year, Government took measures to dampen the demand for buy-to-let investments by making changes to the Stamp Duty threshold. This has further reduced supply, arguably making a 2025 rental supply crisis more likely. The problem is expected to be exasperated next year when landlords’ right to deduct their mortgage interest from their income tax bill is removed. 

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.