Growing number of landlords looking to sell rather than buy

An increasing number of landlords in the UK property market are looking to sell some of their rental stock rather than buy more, according to the latest reports. However, while this number is growing, a similar number are still looking to invest more money.

According to new data released as many as 22 per cent of the buy-to-let owners surveyed said they plan to sell at least some of the stock they own, as opposed to buying more.

However, while this would be likely to increase worries of a shortage in rental properties available nationwide, the study also showed that a similar number (18 per cent) intend to invest more in their portfolios in the coming months.

In the survey, it was also found that the demand for properties in the rented sector continues to rise, with as many as 33 per cent of landlords saying that they have experienced more demand from tenants in the past three years.

As a result in this rising demand, it was also found that as many as 47 per cent of landlords believe that they will increase what they charge tenants in terms of rent over the next 12 months. However, this is not solely down to demand from tenants, with 35 per cent of landlords saying rent rises are set to come about because of the changes to taxation the government has made, which had in turn made it more expensive to operate in the market.

As demand continues to increase for homes to rent, punitive tax changes are discouraging investment by the majority of good landlords who want to provide accommodation. Whilst efforts by the government to support institutional investment in the sector are welcome, this will remain a drop in the ocean.

To meet demand, we need pro-growth taxation that actively supports and encourages the majority of landlords who are individuals providing good housing, to invest in the new homes to rent we so desperately need.

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