The continued attacks on the buy to let sector have resulted in a dramatic decline in investment plans by landlords.
A new bi-monthly survey of over 500 valuers and surveyors by e.surv has found that some 79 per cent of surveyors noted a decline in landlords planning to buy new investment properties, while half of surveyors saw a rise in landlords planning to rationalise their portfolio or exit entirely over the last 12 months.
“These challenges could have several implications for the UK housing market if left unaddressed, including a reduction in the supply of rental properties and an increase in rent for tenants already facing a cost of living crisis” says e.surv.
The demand for rental homes continues to outstrip supply across the UK, with 44 per cent of respondents reporting falls in the stock of rental instructions coming to market.
In times of high demand, it is perhaps unsurprising that the survey also finds that properties are being let more quickly and typically at or above the asking price in the most active rental markets. Some 45 per cent of London-based surveyors reported an increase in rental prices let above the asking price, with 40 per cent of surveyors seeing the time to let a property shorten.
Rob Owens, head of research at e.surv, says: "The buy to let market is facing a number of challenges at present, with rising mortgage rates the biggest concern for landlords. This is leading to a decline in landlords participating in the sales market and an increase in landlords looking to rationalise their portfolios or exit entirely.
"These challenges could have a significant impact on the UK housing market, reducing the supply of rental properties and pushing up rents for tenants. It is important that the government takes steps to support the buy-to-let market and ensure that it remains a viable investment option for landlords.”
In the sales market, the new survey shows that there’s steady pipeline of homes for sale this month, but homes typically take longer to sell and asking prices are being squeezed at the top of the market.
New build incentives are on the rise, typically focused on costs associated with buying, such as deposit contributions, help with legal fees, and stamp duty/land tax payments.
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Well who knew this could happen 😂 after all the s24,s21, EPC C (it will come back under Labour) 😱. FYI … Everyone 🎉🎉
Yes Simon amazing how it happened after all they done to help us.
However not limited to S.24, S.21 and EPC’s. but also Licensing Schemes, all sorts of Regulatory Requirements, Fines. Penalties, Confiscation Orders, Banning Orders, Re-Payment Orders, Fees Ban. Removal of real Deposit Scheme in 2007 & replaced with a Ponzi, Removal of Wear & Tear for furniture lettings, not forgetting the one worse than all Mr Michael Gove’s Proposed Renters Reform Bill the final nail in the coffin.
Then of course there’s the High Interest Rates and Insurance Companies having a field day.
Better not get started on all those lame duck Charities causing Homeless attacking LL’s while housing no one themselves about time their tax free status was removed.
Spot on Michael Foley. I have been asked to fork out £700 for Birmingham Council for selective licensing. I get zero value for this money, and will have to pass on these costs to tenants through increase in rent. In addition the biggest scam of all is the fact that property management companies are hired by freeholders so these companies have no incentive to reduce costs for leaseholders. In fact the more they spend the more money they can make for themselves. Cannot believe how we got into this imbroglio:(
Still amazes me that everytime I hear an NLRA spokesperson in the media they give a sugar coated picture of the landlord exit and its cause. Their cosy relationship with the media is baffling and worst their love-in with Mr Gove has become laughing stock with landlords.
We desperately need an alternative to the NRLA, and a big media signpost to landlords to join an organization that really represents the interests of the PRS. If only the big names and players in the PRS could work together to bring new representation to the sector.
Apparently I am told that Chris Norris of NRLA was on Radio 4 the other day saying he did not feel landlords were selling up due to RRB. I did not hear that broadcast personally - it was reported on another forum but if true how can NRLA possibly claim to represent our views
That's why I wouldn't waste my money joining an outfit like that Catherine.... Why would a landlord want to fund an organisation that has no backbone and doesn't represent them 100%?
As the number of Landlords go down, available rental properties will decrease, rents will go up. Then the authorities will want to bring more legislation to control rents, causing more Landlords leave. Catch 22
You’ve just described the PRS in Scotland just now!
Just a small point but when interest rates did plummet to near zero for owner occupiers post 2008 crash, btl mortgages were consistently higher by a couple of %. So the PRS (and the tenants who have been paying the rents to fund these mortgages) has actually been quietly recapitalising the banks over the last 15 years. It is nice that government wants to thank us with all of these friendly reforms that encourage us to contribute to stabilising the financial sector.
The price of rentals I'm not surprised.
The price of renrtals are very high I would agree Sandra, but why? could that be caused by government and the likes of shelter ?
BTL has simply become a joke to investors.
I’ve already sold 60% of mine and now there is No Capital Gains Tax advantage the rest are on the way asap.
Bye Bye BTL.
I’ve not yet heard any feedback from the Scottish Government ref the recent announcement from the PM in relation to the backtrack on EPC’s and heat pumps, however, I can’t see Wee Patrick Harvie (no votes) reassessing the situation in Scotland anytime soon. Devolution has been terrible for Scotland, especially under this current administration. God Help Us!
Devolution for Wales has been equally disastrous.
I voted against it and all my worst nightmares since its inception have come to pass.
How can it be that, Patrick Harvie (Green Party) the brutal housing czar in Scotland can implement and maintain such outrageous and costly policies which are having a devastating effect on the PRS, when he received only 3000 votes in the last election. I’m dumbfounded!
But what I don't understand is why has there been no mention in either the article or the comments so far on the problems created by the non-qualified leasehold status, estimated to affect 1.7 MILLION leaseholders (400,000 BTL landlords)? Surely this needs URGENT addressing?
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