A recent report by Centre for Cities found that the UK  is missing as many as 4.3 million homes.  With an election looming both major parties have begun to set out their efforts to increase supply; whether the Tory’s  (now aborted) ‘nutrient neutrality’ plan or Labour’s call to rip up planning rules, build on greenbelt or reinstate mandatory housebuilding targets.

In truth, many of these measures are not only unpopular, but will barely make a dent. The same report by Centre for Cities revealed that even if the old target of 300,000 homes per year was met, it would still take at least half a century to fill this backlog.

The constant pursuit of home ownership – despite a deep-rooted lack of action – has blinded both parties to the clear demand for rental properties, and the vital role landlords and the PRS plays in propping up the UK housing market.

But through increasing taxation, scrutiny and anti-landlord policy and rhetoric, many landlords have scaled back their efforts or left the market entirely. With less properties on the market leading to rising rental prices, governments should be encouraging landlords to stay. After all, where is everyone going to live if landlords leave?

Affordability challenges

While residential mortgages have shown significant improvement over the last few months, it is still far from easy for people to afford to buy – especially first timers. Despite reductions, the average five-year fixed rate still starts closer to 5%, rather than around 2% just a couple of years prior. Furthermore, the average home now costs more than eight times the typical income in England.

The cost-of-living crisis has only exacerbated issues, as well as a lack of supply pushing up rental prices, reducing disposable income to save for a deposit. Until people are in a position to build the necessary funds, or just find the right home for them, they need somewhere to live. Mum and Dad can’t put the kids up forever. Whether it’s finding independence or couples coming together, the duty falls to landlords to provide a solution.

Changing ambitions and job mobility

It’s also important to remember that not everyone shares the aspiration to buy their own home. One-in-five households in England and Wales rely on the PRS for housing. Rather than all being ‘trapped’ renters desperate to buy, there are those with no intention of every buying.

In fact, a survey by retailer Hillarys in 2020 found that 34% of millennials do not want to buy their own home. In addition, 21% said the concept of buying on their own was either daunting or unappealing.

There’s also those where home ownership does not fit in with their lifestyle or career. Landlords and setups such as HMOs provide a lifeline to the likes of travel enthusiasts and transient workers, where full home ownership or even traditional rental doesn’t make sense. As the cost of both increases, what options will local councils and the government offer to support this segment?

Rising student population

On the topic of HMOs, where will we house our growing student population? After all, 2022 saw a record 44% of 18-year-olds apply for higher education, with 180,000 taking their place in universities. In addition, the steady increase in international students meant the UK hit its enrolment target almost a decade ahead of schedule – and in spite of Brexit. While some students may choose to stay at home if local, or live in halls of residence, the vast majority will need external support with housing.

As local councils continue their war on landlords and HMOs in particular, it’s baffling how they miss the critical role they play in the wider housing mix. These landlords provide accommodation to those on the bottom rung of the property ladder and without them, students, young professionals and lower income tenants will have far fewer options.

As both major parties aim to solve a housing crisis by fixing supply, it’s abundantly clear that they have overlooked the threat posed by landlords disposing of buy-to-let properties. With so many people relying on landlords for housing, let’s hope they address this before it is too late.