Private landlords are more than twice as likely to sell properties than they are to purchase them, according to new research.
Findings published by research consultancy BVA-BDRC reveal that in Q2 2023 over one in ten (12%) of landlords in England and Wales sold properties. In contrast, only 5% purchased properties during this same period.
Looking ahead the research, commissioned by the National Residential Landlords Association (NRLA), also found that over a third (37%) of landlords plan to cut the number of properties they let over the coming year meaning that the proportion of landlords who plan to downsize their portfolio is at an all-time high.
Only 8% said they plan to increase the number of properties they let in the market.
The loss of rental properties comes despite strong demand from tenants. Two-thirds (67%) of landlords polled reported that tenant demand had increased in the second quarter of the year – another all-time high.
Amidst growing mortgage costs and ongoing uncertainty about proposed reforms for the PRS, the NRLA warns that the supply crisis will only deepen without urgent action from the Government.
It calls for ministers to scrap tax changes which deliberately seek to deter landlords from investing in desperately needed private rented accommodation. This includes the 3% stamp duty levy on the purchase of homes to rent out, as well as the decision to restrict mortgage interest relief on long term homes to rent.
Ben Beadle, Chief Executive of the NRLA, comments: “Whilst the Chancellor has developed a mortgage charter to help homeowners, the lack of assistance for renters and their landlords is clear for all to see.
“Households renting privately are facing the full force of the supply crisis, and change is needed now to prevent the situation from worsening over the next twelve months.
“The Government must reverse its damaging tax hikes on the sector. It is frankly absurd to have a tax system that punishes landlords for providing the homes tenants so desperately need whilst favouring holiday lets.”