Third of landlords intend to sell within the next year, research reveals

Around a third of landlords said they intend to sell a property within the next 12 months from Q4 2023, new research from Uswitch has revealed.

More than 83,000 buy-to-let (BTL) mortgages were approved by lenders, making up 7.5% of total mortgage lending in 2023.

In addition, buy-to-let mortgages were responsible for 7.5% of the total gross mortgage advances in Q3 of 2023.

Buy-to-let mortgage advances were valued at £4.7bn for Q3 2023 – 10% more than the previous quarter but 57% less than the same time in 2022.

In terms of demographics, those aged 40 to 49 typically borrowed the most throughout the year.

With average loans of £152,963, this age group received fractionally more than those aged 50 to 59, who borrowed an average of £151,621.

However, Uswitch found that while many landlords were keen to sell late last year, the average loan value on a buy-to-let property purchase has now risen to just below £158,500 in March 2024 – marking a rise of 6% from the previous month.  

Regionally, London was home to the highest average buy-to-let loan value of any region in the UK.

The average value of a buy-to-let loan for a new property purchase in the capital stood at £272,052 in March 2024 – almost a third (30%) more than any other region.