Landlord exodus sees homes for rent hit a 14-year low

As landlords are squeezed by rising mortgage costs and reduced income, the number of homes to rent in the UK has hit a 14-year low, the Financial Times reports.

Using data from consultancy TwentyCi, the newspaper says that the number of properties available for rent has plunged by 35% in two years, to reach a record low of 241,000 in June.

That’s the lowest figure since the firm started tracking the data in 2009 when there were 370,000 homes available.

The data has been collected from, property portals, and lettings and estate agents.

‘There are fewer properties and they cost more’

TwentyCi’s chief customer officer, Colin Bradshaw, told the newspaper: “Availability is reduced and affordability is down. There are fewer properties and they cost more. That’s not great for renters.”

He added that while data has yet to show a large-scale landlord exodus, the rising mortgage rate is undermining business models.

Those rate rises are also leading some landlords to sell their portfolios.

He said: “The yield position on any asset that you own where it’s mortgaged is likely to be severely eroded.”

UK’s rental market is facing a double whammy of challenges

The Financial Times goes on to say that the UK’s rental market is facing a double whammy of challenges, as landlords struggle with higher mortgage costs and tenants face soaring rents.

According to Moneyfacts, the average interest rate for a two-year fixed BTL mortgage rose to 6.97% last week, up from 6.69% the week before.

Also, the number of available rental properties has fallen as more landlords have sold up or switched to longer-term tenancies.

TwentyCi says that rents have increased by 23% since 2019, and by 8% in the first half of this year, compared with the same period last year.

To compound the shortage of rental homes, it appears that tenants are reluctant to move out of their current homes for fear of paying more elsewhere.