Renters Rights Act will further hamper demand for flat developments
As the Renters Rights Act comes into force on 1 May, Stacy Eden, Partner and National Head of Real Estateat leading audit, tax and consulting firm RSM UK, comments: “Flat developments are becoming increasingly unviable, and the Renters Rights Act will further compound this. We are already seeing more landlords retract from the market, or shrink their portfolios, in response to rising taxes and increasing regulation.
“While the supply of flats has been a challenge, demand for flats has also fallen, with consumer concerns around high service charges and building safety, and a desire for outside space.
“As first-time buyers favour houses over flats now, and landlords leave the market, housing development now proves more profitable for developers. With prices of flats falling over the last six years or so, and costs and regulation increasing for developers, it’s no surprise that developments of flats, which provide much needed high-density housing, are becoming increasingly challenging.”