In addition to the recent mortgage interest rises being passed on to tenants, the targeted tax raid on landlords in terms of mortgage interest relief restrictions, capital gains tax uplift, stamp duty uplift as well additional referencing and regulatory costs etc, has created an exodus of landlords and a barrier to investing.
Demand remains high, supply drops off, and a lack of new housing to keep pace with this swelling population creates a s**t storm.
Ironically, the recent budget announcement to drop the top CGT rate from 28% to 24% was designed to generate more revenue by encouraging more landlords to sell, which will just decrease supply further.