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Landlord exodus from the PRS as uncertainty and costs rise
12:05 AM, 19th July 2024, 2 years ago
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There’s been a surge in landlords exiting the private rented sector (PRS) with a dramatic rise in the number of properties previously listed for rent that are now up for sale.
According to new data from TwentyEA, its analysis shows that in June nearly one in five properties listed for sale had been rented out in the past three years.
That’s just over 28,000 properties which is 100.6% higher than in June last year and 34.6% higher than in June 2019.
It’s also 27.4% higher than in May when Rishi Sunak called the General Election.
‘Significant uplift in the number of landlords selling up’
TwentyEA’s executive director, Katy Billany, said: “There’s no doubt our data shows a significant uplift in the number of landlords selling up, either reducing their portfolio size or possibly exiting the sector completely.
“There’s currently a lot of uncertainty in the buy to let market around what the change in government means for landlords but they have also been hit by steep interest rate rises and rising costs generally, so it’s likely there are several factors at play here.”
Complex picture of the UK’s property market
The report suggests a complex picture for the UK’s property market with some sectors showing signs of recovery, while others are struggling.
The number of new properties listed for sale and sales agreed have both increased compared to the previous year.
However, the lower end of the market, crucial for first-time buyers, has seen a decline due to limited stock and affordability concerns.
The impact of rising interest rates and living costs is also evident in who is buying property.
Exchanges have increased for older demographics
Exchanges, a key market indicator, have increased significantly for older demographics who are likely to be mortgage-free and have more flexibility to move.
Conversely, younger age groups face substantial financial pressures and have seen a dramatic reduction in exchanges.
The analysis also found that the volume of property exchanges has declined across all income brackets below £50,000.
This highlights, the firm says, the widespread impact of the current economic situation.
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Member Since January 2023 - Comments: 36
12:10 PM, 21st July 2024, About 2 years ago
Reply to the comment left by Mr Blueberry at 19/07/2024 – 16:45
Why is the Private Landlord the cause of all the Governments housing problems? They are taking a big stick to beat us to death in the misguided hope that it will miraculously conjour up all the housing stock they require for all the homeless and immigrants. Do they not understand that the PLL is a large part of the solution and not the problem at all. Will someone kindly tell them that we currently provide around 5 million homes. Homes that they haven’t got a cat in hells chance of providing, so please stop the abuse!!
Member Since January 2023 - Comments: 60
12:31 PM, 21st July 2024, About 2 years ago
Few people are looking at the root cause of the housing crisis. Not that difficult is it.
Keep pouring water into a full bucket it just overflows.
In a balanced population elderly pass on at roughly the same rate as young need homes so no need for more homes
But…
Legal net migration 745,000 last year = 6230 new homes needed a week mostly squashed into England. Plus wherever the illegals wind up living.
80% of migrants move into rental accommodation =5000 extra rentals needed every week !
Meantime the govn’t are hounding landlords. Crisis looming
Nothing wrong with legal migration, but it now needs to be in balance. One in one out. We’re full
Just look at the levels of traffic congestion on our main roads. We need more people here like a man on fire needs petrol. But the only party to discuss reducing migration is Reform
So to anyone who voted for the LibLabConGreen pro mass immigration parties.
This is what you voted for. I presume you won’t be NIMBYs if any of the 6230 new homes a week due to mass immigration are proposed on green space near you. If there’s any green space left !