Could changes to shared houses decrease supply?

Could changes to shared houses decrease supply? The government has proposed new local powers will be introduced to control the spread of high concentrations of shared rented homes and to tackle incidents unsafe and substandard accommodation run by bad landlords, it has been revealed.

Housing and Planning Minister John Healey made the announcement this week, stating changes mean that landlords will need to apply for planning permission in order to establish new houses in multiple occupation.

This could include changing a family property into one which can be shared between three unrelated individuals.

New renting guidelines may provide peace of mind to Britons looking for property to rent in Eltham or another part of London.

However, Chris Horne, editor at Property Hawk, warned the proposals could also lead to a fall in supply of housing.

"I think it will create a huge amount of uncertainty for landlords looking potentially to buy property to rent out to multiple lets, resulting in a reduction in supply of letting property," he added.

Written by Charles Mackay