A significant number of homes suitable for first time buyers could flood the property market in the coming year, as new figures from the National Landlords Association (NLA) show that approximately 380,000 landlords (39%) intend to sell their investments.
The report indicates that 45% of landlords who intend to sell property in the coming year plan to offload individual flats and apartments, with a third (33%) looking to sell terraced houses – both of which are typically affordable and attractive options for those taking their first steps onto the property ladder.
Significantly, just 7% of landlords who plan to sell say that they intend to sell to other landlords, signalling renewed hope for many first time buyers and homeowners looking to progress up the property ladder.
The data comes as separate findings from UK Finance show signs of buoyant first time buyer activity of late.
Richard Lambert, the CEO of the NLA, says: “These findings sound like positive news for potential new homeowners, but the reality is, not everyone wants or is in a position financially to buy.
“In fact, if all these homes are sold as planned, then it will lead to a significant fall in the supply of property available to those who choose to rent, or have no other option but to rent.”
The NLA has been looking into this issue recently, and has produced a video and discussion paper about the relationship between landlords and first time buyers in the market.
Lambert adds: “Everyone seems to have a gut instinct about the extent to which they feel landlords and first time buyers compete for homes in the UK, but homeownership is a highly emotive issue, so the facts are often overlooked.
“There’s certainly no denying that competition exists, but the significant barriers to homeownership are more likely to be the high cost of a deposit or ability to access mortgage finance.”
He concludes: “With our new video and discussion paper, we hope to provide more of an accurate picture of these issues, and, importantly, we want to focus the debate on what can be done to ensure that everyone has a roof over their head – regardless of whether they rent or own.”
Access these documents from the NLA here: www.landlords.org.uk/news-campaigns/news/the-hustle-homes