Haart has seen the number of landlords registering to buy with its branches drop by more than a third despite a boost in tenant demand.
Data from the national agent, based on its branch activity in October, found that landlord purchases were down 37% annually, and fell 60% in London.
In contrast, it has seen 17.4% tenants register for properties, up 24.9% in the capital.
Paul Sloan, operations director for haart, warned that this suggests both landlords and home buyers are holding off from investing in property, with the latter favouring renting amid Brexit uncertainty.
Sloan said: “In uncertain times, the private rented sector can provide some certainty and security for those who need to move home, with fixed rent over a fixed term helping tenants to manage their budgets and plan their lives accordingly.
“This is reflected in the fact that we’re seeing significant increased tenant demand compared with this time last year – making buy-to-let property an attractive option for those looking for a reliable return on their investment.
“Unfortunately, this increased demand is still set against a backdrop of reduced supply. It would be good to see some active encouragement from the Government for the sector to attract new investors to enter the market.”
He said the Government should rethink policies such as the additional Stamp Duty rate and the scaling back of mortgage interest relief, which he argued are harming the sector.
Sloan added: “The next couple of weeks will prove interesting.
“We could expect a super-charged property market in 2019 if a positive Brexit deal is agreed. With a strong deal in place, confidence would fuel the market upwards, turning instructions into transactions.
“Political stability is crucial for a thriving housing market – and for this we need a stable Government. If a leadership bid were triggered we could risk creating further uncertainty in the market.
“In my opinion the greatest threat is continued uncertainty because of political posturing. Whilst a ‘no deal’ scenario would potentially be quite damaging, an extended period of Brexit negotiations beyond next March could prove just as detrimental.”
Mark Shoffman is clearly not in touch with the issues of landlords. Brexit uncertainty should be increasing the attractiveness of purchasing new properties to let due to reduced prices, but Landlords are fed up with unfair taxes and a continuous attack on their legitimate businesses by MP’s, government and councils. Last week we were called ‘bastards’ by an MP. Imagine if they called tenants ‘bastards’. It would be on the front pages of the papers. They might get away with it with rental agents, but it doesn’t make you want to house anyone anymore if you are a landlord!!
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