New research has highlighted an alarming trend of private landlords selling properties at a rate more than double that of purchasing them.
Today, research consultancy BVA-BDRC released findings from Q2 2023 that showed 12% of landlords in England and Wales had sold properties, while a mere 5% made property purchases.
This study, sponsored by the National Residential Landlords Association (NRLA), also discovered that an unprecedented 37% of landlords plan to decrease the number of properties they rent out in the upcoming year. In contrast, only 8% of those surveyed intend to expand their portfolios.
Despite the significant reduction of rental properties, tenant demand remains robust. A record-breaking 67% of landlords noted an upsurge in tenant demand during the second quarter.
The NRLA attributes this exodus from the rental market to mounting mortgage expenses and apprehensions about forthcoming alterations to the Private Rented Sector (PRS).
They have urgently called upon the Government to intervene. Recommendations include reversing tax changes aimed at deterring landlords from investing in private rented homes. Key points of contention are the 3% stamp duty levy on buy-to-let homes and limitations on mortgage interest relief for long-term rentals.
Ben Beadle, NRLA’s chief executive, said: “While initiatives exist to support homeowners, the absence of assistance for renters and landlords is glaringly evident. The rental supply crisis is hitting renters hardest, and without immediate changes, we anticipate even more strain in the upcoming year.”
Beadle further added: “The current tax system discourages landlords from providing essential housing while promoting holiday lets. This imbalance needs rectification.”
