Data Shows Private Properties to Let on Decline
Property reporter has recently reported; The latest Ministry of Housing report shows that almost 4,000 buy-to-let properties are being sold by landlords each month, resulting in the first recorded decline in the number of rental properties in 18 years.
The figures show the number of privately rented homes in England fell by 46,000 to 4.79 million last year, the largest reduction since 1988. Recent figures from UK Finance also reveal that there were just 5,500 new buy-to-let home mortgage purchases completed in March, some 19% fewer than in the same month last year.
The capital has seen a 20% drop in the number of properties available to rent over the last 12 months. Over the same period, there has been a 12% fall in the number of available rental properties across the country.
Belvoir properties has called on the government to address the crisis in the private letting sector in this Autumn’s budget. Data from Belvoir properties reported by Mr Gary Adam shows the following data;
“It says that the amount of Belvoir offices that reported landlords selling up to three properties in Q2 2018 went up from 46.3 per cent to 48.1 per cent; four to five properties decreased from 31.5 per cent to 26.9 per cent, six to ten properties from 7.4 per cent to 17.3 per cent, and that the number of offices reporting landlords selling 11 or more properties fell slightly from 5.6 per cent to 3.9 per cent.”
Data collated commissioned by the British Landlords Association shows landlord’s evicting tenants not re-letting has gone up. Mr Sajjad Ahmad CEO of the British Landlords Association has said “raft of reports recently published from various sources show a trend that the letting sector is shrinking. landlords will choose low risk tenants and those who are on benefits will find it difficult to find suitable accommodation. The government needs to take positive steps now, so homelessness does not escalate.”
Jatin Ondhia, CEO of Shojin Property Partners, has made been reported to have said: “As a result of the Government’s increase in stamp duty, it is now much more costly to acquire a buy-to-let property. A £250,000 investment property will incur stamp duty of £10,000 compared to £2,500 for an owner occupier.
“Many landlords have seen their profits eroded by the increased burden of taxation and regulation. They are also facing poor buy-to-let yields especially in London for example, where they are between just 2-3%, while nationwide the average yields are between 6-8%.
“Over the last six months, we have seen a sharp increase in investors diversifying into property crowdfunding, having previously invested in the buy-to-let market. Since the launch of our crowdfunding platform, we have seen many landlords investing in our residential development projects, from as little as £5,000.”