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Sector data shows growing mismatch between supply and demand

TDS has released its second quarterly briefing on the state of the market

The latest data shows that the cost of renting has continued to increase and demand remains high. Strong competition for properties against stagnant supply will inevitably exert an upward pressure on rents.

Trends in supply and demand are the result of a complex interplay of factors. Some factors that contribute to a growing mismatch between supply and demand include:

  • A persistent shortage of housing across all housing tenures and a failure by the Government to provide a sufficient level of affordable accommodation for those in the greatest need.

  • Rising demand from students and a shortage of Purpose-Built Student Accommodation to meet this demand.

  • Affordability of home ownership: The huge demand for rental properties in recent years has been widely linked to the inaccessibility of home ownership. Decreased mortgage affordability as associated with rising interest rates and steeper mortgage repayments may be further deterring would be buyers.

  • Government homelessness policy also has a direct impact on demand, as councils have been encouraged to discharge their homelessness duties through private lettings.

  • Local housing allowance (LHA) rates have been frozen in cash terms since April 2020. The pool of affordable properties has shrunk, increasing competition in the affordable part of the market.

To view the Q2 State of the Market Briefing in full, click here.

Improving standards and developing policy in the private rented sector

The Dispute Service supports an evidence-based approach towards improving standards and developing policy in the private rented sector by providing a range of resources.

Here you can find information and our responses to key policy proposals affecting landlords, letting agents and tenants. We also carry out in-depth research on a range of issues in the sector and analyse key datasets.


About the Author

Dr Jennifer Harris, Head of Policy and Research at The Dispute Service

Dr Jennifer Harris is Head of Policy, Research and Strategy at The Dispute Service where she is establishing a new department to support an impartial and evidence-based approach towards improving standards in the private rented sector. Jennifer holds a PhD from the University of Bristol Law school. Prior to joining The Dispute Service she led the Raising Standards in the UK Private Rented Sector research programme within the UK Collaborative Centre for Housing Evidence (CaCHE) and has also worked as the Research Manager at the national organisation Homeless Link.

The views expressed in this content are solely those of the author alone and do not necessarily represent the views of TDS, its officers, or employees.


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