You are here: Home - Mortgages - Buy To Let - News -

‘Worrying picture’ for renters as stampede of landlords sell up

0
Written by: Samantha Downes
06/06/2022
The number of properties available to rent through letting agents in March halved between 2019 and 2022.

In those three years, 84% of landlords who removed their property from the rental market did so to sell it.

Over half of the rental properties sold in March this year alone did not return to the private rented market, according to trade body, Propertymark. The rest are transferring to owner-occupier dwellings, it said.

Its survey of 443 agents, working across 4,000 branches in the UK, “was a clear indication of the rate at which the private rented market had been shrinking”.

It found the UK average number of properties available to rent per branch decreased from 30.4 to just 15.6 between March 2019 and March 2022.

Nathan Emerson, chief executive at Propertymark, said its research presented a “worrying picture” for private tenants as stock has been diminishing and they are having to chase fewer properties at elevated rents.

“A lack of property is the root cause for rent increases and rising figures on social housing lists,” he said.

As such, Emerson said more needed to be done to support the private rented sector.

He said: “We know from our qualitative research that the most common reasons for landlords to choose to sell their properties and no longer provide homes are around risk, finances and viability.

“Landlords and letting agents have been the subject of extreme legislation changes as the UK government tries to improve the sector. However, without a middle ground, these changes are actually proving detrimental to those they are supposed to protect.

“Sadly, we do not see this improving as the sector braces itself for more changes within the anticipated Renters’ Reform Bill and upcoming energy efficiency targets.”

Rental market ‘brutal’

Rhys Schofield, managing director at Peak Mortgages and Protection, said the rental market was brutal for tenants and landlords.

He said: “If we think sale prices are rocketing, rents are going up even faster due to such acute supply issues. With the impending changes over the next few years around minimum EPC ratings for rental properties, there is a ticking time bomb of 3.5 million properties not at those new minimum standards, which will only make supply shorter without targeted government support.

“The end goal of getting to net zero is absolutely the right thing to do but as with most things with the current government, the detail and support in how to get there without causing a great degree of difficulty for those concerned is lacking.”

There are 0 Comment(s)

If you wish to comment without signing in, click your cursor in the top box and tick the 'Sign in as a guest' box at the bottom.

Flight cancelled or delayed? Your rights explained

With no sign of the problems in UK aviation easing over the peak summer period, many will worry whether holida...

Rail strikes: Your travel and refund rights

Thousands of railway workers will strike across three days this week, grinding much of the transport system to...

How your monthly bills could rise as the base rate reaches 1.25%

The Bank of England has raised the base rate to 1.25% as predicted – the fifth consecutive rise in just six ...

What will happen if rates change

How your finances will be impacted by a rise in interest rates.

Regular Savings Calculator

Small regular contributions can build up nicely over time.

Online Savings Calculator

Work out how your online savings can build over time.

DIY investors: 10 common mistakes to avoid

For those without the help and experience of an adviser, here are 10 common DIY investor mistakes to avoid.

Mortgage down-valuations: Tips to avoid pulling out of a house sale

Down-valuations are on the rise. So, what does it mean for home buyers, and what can you do?

Five tips for surviving a bear market mauling

The S&P 500 has slipped into bear market territory and for UK investors, the FTSE 250 is also on the edge. Her...

Money Tips of the Week