Landlords’ confidence in the buy-to-let sector continues to fall with the majority less confident about the PRS than they were three months ago, according to the Residential Landlords Association (RLA).
The gap between the percentage of landlords planning to sell properties and those seeking to purchase has increased seven fold in the last two years from 4 percentage points to 21 percentage points.
Confidence is at its lowest in London and Wales and highest in the West Midlands followed by the North East and Yorkshire and The Humber.
Overall, more than half - 55.1% - of private landlords were less confident about the market in Q3 2019, compared with the preceding quarter.
Some 34% of landlords are planning to sell property over the next year compared with 22% two years ago.
Just 13% plan to purchase at least one property to rent out compared with 18 two years ago.
One positive outcome for tenants is that many landlords are not increasing rents with two thirds freezing their rents over the last year.
David Smith, policy director for the RLA, commented: “We warned the government that the tax increases they have imposed on landlords would be counter-productive and these figures show how right we were. All they are achieving is driving landlords to leave the market, damage investment and so making it more difficult for tenants to find somewhere suitable to live.
“Whoever is in government following the election needs to completely change the approach and start to support good landlords to encourage them to invest to meet the rising demand for rented housing.”