Private landlords are more than twice as likely to sell properties than they are to purchase them, according to new research.
Findings published by research consultancy BVA-BDRC reveal that, in Q2 2023, over one in ten (12%) of landlords in England and Wales sold properties. In contrast, only 5% purchased properties during this same period.
Looking ahead the research, commissioned by the National Residential Landlords Association (NRLA), also found that over a third (37%) of landlords plan to cut the number of properties they let over the coming year, meaning that the proportion of landlords who plan to downsize their portfolio is at an all-time high.
Only 8% said they plan to increase the number of properties they let in the market.
The loss of rental properties comes despite strong demand from tenants. Two-thirds (67%) of landlords polled reported that tenant demand had increased in the second quarter of the year – another all-time high.
Amidst growing mortgage costs and ongoing uncertainty about proposed reforms for the PRS, the NRLA warns that the supply crisis will only deepen without urgent action from the Government.
It calls for ministers to scrap tax changes which deliberately seek to deter landlords from investing in desperately needed private rented accommodation. This includes the 3% stamp duty levy on the purchase of homes to rent out, as well as the decision to restrict mortgage interest relief on long term homes to rent.
Ben Beadle, Chief Executive of the National Residential Landlords Association, said:
“Whilst the Chancellor has developed a mortgage charter to help homeowners, the lack of assistance for renters and their landlords is clear for all to see.
“Households renting privately are facing the full force of the supply crisis, and change is needed now to prevent the situation from worsening over the next twelve months.
“The Government must reverse its damaging tax hikes on the sector. It is frankly absurd to have a tax system that punishes landlords for providing the homes tenants so desperately need whilst favouring holiday lets.”
SHS tenants in PRS are a thing of the past and now priced out. Not a bad thing considering the mess and fall out so many cause, who should never have been in PRS. The only ones left are existing long term tenants with landlords who are taking the hit and keeping the rents low with modest increase …… but for how long? Landlords are losing out big time and forecast cost are set to increase substantially.
It was inevitable that PRS would shrink if you have a buy to let. Tax and interest rate rises just make it no longer viable for many who find themselves now on 4% above bank base rates, which equates to more than a couple of £hundred. Benefits do not cover it and no profit to think about.
We haven’t seen the worst yet and its already in crisis. The misery for tenants is already here to see in all areas of devolved powers, so its not just one political party mess.
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Congratulations Shelter & Generation rent… you got what you wanted.
Attacking landlords has driven them out of the sector, instead of fixing the actual problem i.e. lack of housing supply. Now with less properties available for PRS demand for the available stock has skyrocketed resulting in price increases… who could have seen this coming?
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Levelling Up, you say?
No, this is RRB or Shelter propaganda, to give it the accurate title, and Market Testing, which shows that it doesn’t work for Tenants because it doesn’t work for Landlords.
The PRS cannot substitute for a social housing backlog of many decades since Right to Buy wasn’t matched with a Duty to Build. Add in no meaningful control of immigration and the market cannot work. Demand outstrips Supply and always will.
Now that landlords are punished for providing a service that government will not, and putting their capital at risk for no or low reward, government is foolish enough to listen to activists and make it too difficult to do at all.
Homeless people will be the result so that’s Levelling Down, and a Hospital Pass for the next government, along shortly..
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