Buy-to-let demand falls across UK claims estate agent

The buy-to-let market has become harder to justify for small landlords as demand across the UK continues to fall, according to new research.

Data from estate agent emoov shows online searches for “buy-to-let landlord” have dropped sharply, with only one UK city recording an increase in interest.

The figures come after the Renters’ Rights Act came into force on 1 May.

Buy-to-let market is changing

According to the research, London saw a 41.7% drop in searches, followed by Birmingham at 33.3%. Carlisle recorded the steepest decline, down 59%.

Nick Neale from emoov says the buy-to-let market is evolving as more landlords weigh up whether to sell.

He said: “For many years, private landlords were encouraged to see buy-to-let as a sensible long-term investment. It offered rental income, potential capital growth, and a form of pension planning for ordinary people who were prepared to take on the responsibility of providing housing.

“I am not considering selling because I believe tenants should have fewer rights, or because I think landlords should be free from regulation. Good tenants deserve safe, secure, well-managed homes.

“Bad landlords should be dealt with. But the current direction of travel has made small-scale private letting increasingly difficult to justify, especially for landlords who own one or two properties and manage them alongside other work or retirement plans.”

“The buy-to-let market isn’t disappearing, but it is changing. Landlords are having to be more strategic than ever before, whether they’re expanding their portfolio, holding onto existing properties or considering a sale. The most important thing is to make decisions based on the long-term picture rather than reacting to short-term challenges.”

Cambridge only UK city to record growing interest

The data shows Cambridge is the only UK city to record growing interest in buy-to-let investment, with searches rising 23.5% year-on-year.

Plymouth recorded the next strongest performance, with demand falling by just 2.9%.