Cost of renting in the South West rises by 23 per cent in two years
Generation Rent say prices are being hiked by landlords because of demand
Holiday lets are driving up rent prices in the South West, according to new research.
Generation Rent say costs have soared since the pandemic, as landlords have switched properties to the holiday lets market.
It costs around one quarter more to rent a home in regions popular with holidaymakers than it did two years ago, with the numbers of properties available to let sharply down – by as much as 53 per cent in Wales.
In contrast, rents in London are down by 17 per cent compared with July 2019, with the number of listings up by 10 per cent in the same period.
The findings are further evidence that the popularity of rural and coastal Britain since the pandemic is putting pressure on renters, who are now being priced out of their communities.
Alicia Kennedy, Director of Generation Rent, said:
"Self-catering accommodation plays an essential role for the tourist industry, but it is too easy for landlords to evict locals from their homes to make way for more lucrative holidaymakers. As a result communities are being torn apart and businesses that serve tourists struggle to find staff.
"The situation is unsustainable. The government must give councils powers to tax and regulate their local holiday lets market appropriately, but should also act directly to take tax perks away from holiday lets so we keep homes available for people who need one."
Generation Rent looked at data published by Zoopla on the number of listings and the average rents in each region, on 15 July 2019 and 16 July 2021.
In South West England, listings have fallen by 49 per cent and rents are up 23 per cent.
Generation Rent is now calling on the Chancellor Rishi Sunak to withdraw mortgage interest relief from landlords of furnished holiday lets, as part of creating a level playing field with the wider private rented sector, and encourage more landlords to make homes available to people who need somewhere to live.
They say further measures are needed to regulate the holiday lets market, ensure owners of holiday lets and second homes pay enough council tax, and build enough homes to allow people to stay in the areas where they grew up.