The most recent forecast from the Office for National Statistics suggests that there will be a rise of 8.4 million in the population of Britain during the next 22 years.
This could well spell more bad news for people trying to get onto the property ladder and will lead to the need for yet more properties available to let.
Supply/Demand Imbalance
A large supply/demand imbalance in the property market is set to continue, driving property prices up further in the medium to long-term.
As such, there are growing calls for the Government to reverse many of the anti-landlord measures imposed in recent years, such as the scrapping of wear and tear allowance and increases to stamp duty.
Jonathan Stephens, Managing Director of Surrenden Invest, noted: ‘Whilst it’s wonderful that we can all enjoy a longer life and a larger population can positivity impact the size and capability of those of working age, it does also increase pressures on basic requirements such as housing – namely, where will we all live?!.’
Are more landlords needed to cater to demand?
‘Successive governments’ record of building enough homes to meet demand we know has and remains woeful with the creation of new homes, especially within the private rented sector which is growing rapidly, being funded more and more by individuals and private institutions. With population forecasts such as these, it would seem wise for landlord investors to be encouraged, not penalised through stamp duty reforms and tax hikes as we have seen over the past 18 months.’[1]
[1] https://www.landlordtoday.co.uk/breaking-news/2017/8/more-btl-landlords-needed-to-meet-demand-from-a-growing-population
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