ARLA report a increasing number of landlords selling upMake Text Bigger
ARLA Propertymark have analysed their sales and lettings data to reveal trends and expectations for 2018. This year the number of Buy to Let landlords selling their properties peaked in March and April when agents reported a 33% spike in the number of landlords selling up.
Rent increases are also up on last year. In August, the number of tenants experiencing rent hikes peaked at 35%, before falling to 27% in September. Rents for tenants were least likely to increase in October at 22%, but overall in 2017, 27% of tenants had their rents increased compared to 26% in 2016.
This is showing a rising trend of rent increases since the Summer Budget 2015 announcement of Section 24 mortgage interest relief restrictions.
David Cox, Chief Executive, ARLA Propertymark commented on the figures saying:
“Landlords are becoming more selective about their property investments in light of last year’s Stamp Duty Land Tax changes. Mortgage Interest Relief is starting to bite which is why we saw an increased number of landlords selling up. It’s likely that as we move into 2018, tenants will continue to see rent increases as supply starts to reduce, demand continues apace, and legislative changes increase costs for landlords.”
However, the supply of rental properties were at their highest in January, when it stood at 193. On average in 2016, the number of properties available per branch was 180, compared to 188 from January – October 2017.
Concerning this increase in supply David Cox said: “It was always going to be an interesting year, following the announcement of the letting agent fee ban in last November’s Autumn Statement. I think we’re starting to see a consolidation of some agencies in the industry as the fee ban looms, which could explain why the number of properties under management has increased.”
So it is fewer properties available to rent and also fewer agencies.
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