Highest Number Of BTL Sell Ups As Droves Of Landlords Escaping The Sector
Letting agents are claiming that the number of private landlords selling their properties and quitting the private rented sector reached its highest level in April; this is blamed on the government’s ‘landlord bashing’ with its punitive tax and legislation regulations.
Many landlords are feeling the pinch and their profits have been decimated by the buy-to-let tax changes and are leaving the sector as they have had enough.
An association of letting agents latest private rented sector survey, found that in March an average of four landlords per branch member sold up which then rose to five per branch in April.
Because of the downward spiral in supply of rented properties and an increase in private tenants may cause a huge rise in rents.
The report underlines the growing disparity between the supply and demand as on average per branch there were 72 prospective tenants in April whereas in March it was 66. It also reports in April that 26% of tenants had their rents increased, this is the highest since September 2017 when 27% had to contend with rent hikes.
David Cox, chief executive of the association, said: “The barrage of legislative changes landlords have faced over the past few years, combined with political uncertainty has meant the BTL market is becoming increasingly unattractive to investors.
“Landlords are either hiking rents for tenants or choosing to exit the market altogether to avoid facing the increased costs incurred. This in turn is hitting renters most, at a time when a huge number of people rely on the rented sector, and leaves us with the question of where will these people find alternative homes?
“As demand for private rented homes massively continues to outstrip supply, the government can no longer divert its attention from the broken housing market.
“The recent news that the government is regulating the industry is a step in the right direction, but ultimately we just need more homes.”