Despite a modest 13pc improvement in the number of available rental properties from last year, there are still more than a quarter fewer rental homes on the market than in 2019.
The Chancellor should hand out more tax relief to landlords in the Budget on October 30 to incentivise investment in rental property and stabilise demand, Rightmove said.
Tim Bannister, a Rightmove property expert, said: “We are seeing some landlords choosing to exit the market with potential tax changes and stricter EPC regulations as additional factors in landlords’ decision-making.
“With rental supply under strain, incentivising landlords to invest in energy-efficient upgrades or offering tax relief could help maintain rental supply and, ultimately, ease affordability pressures for tenants.
Britain’s property market boomed for years thanks to the introduction of buy-to-let mortgages in the late 1990s, but the gradual erosion of associated tax benefits under the previous Conservative government has caused many landlords to sell up.
