The residential letting market is on the decline
The latest Ministry of Housing report recently published 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.
Marc Shoffman recently wrote an article for property industry eye in brief he reported; Demand for rental property has hit its highest level so far this year, but supply has failed to keep up, letting agents report.
ARLA Propertymark’s July Private Rented Sector Report – based on responses from 191 members – shows that the number of new prospective tenants registered per branch increased from 71 in June to 79 in July, the highest level so far this year.
It matches the previous high reached last September.
However, the supply of available properties moved in the opposite direction to demand, falling from 191 in June to 184 last month.
There are also reports of fewer tenants experiencing rent increases, with the proportion of tenants seeing hikes falling from 35% to 31% between June and July.
David Cox, chief executive of ARLA Propertymark, said: “Buy-to-let investors are being pushed out of the market by increasing costs and continued regulatory change, and new landlords are being deterred from entering.
“Last month, an average of four landlords took their properties off the market per branch, up from three this time last year – and as supply falls, competition among tenants increases, which pushes up rent costs.
“Almost a third saw their rents rise last month, and although this figure was down from June, it’s still far too high. To put tenants back in the driving seat, we need more homes available to rent, and the only way this will be achieved is if the Government makes the market more attractive for buy-to-let investors.”
The letting sector recently has had a number of adverse tax changes compounded by legislation in the last 4 years which landlords have found to be challenging. Some landlords it would seem have decided to sell up.
Mr Sasha Charles from landlord Advice UK a leading national tenant eviction company has said “we have seen a noticeable intent from our clients to sell and invest money in other area’s” when they obtain vacant possession.