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

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

0:03 AM, 17th July 2023, About 10 months ago 3

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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.


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Comments

Peter

11:08 AM, 18th July 2023, About 10 months ago

As more and more Landlords leave the PRS due to the War on Landlords by Government there will be fewer homes for rent which unfortunately will drive up prices. My landlord of 11 years has been fantastic with only 2 rent increases. Myself in return have kept the property clean and nicely decorated. So in other words the situation is great for both sides. However, I'm worried sick that the Gov will intervene and this proposed Renter's Reform Bill with its talk of Landlords having to register (and pay for the privilege) will be the final straw for my Landlord. I have no savings and there isn't one single property in my area I could afford to rent. I agree that some Rogue Landlords AND equally some Rogue Tenants need to be dealt with but not at the expense of the Good Ones. AND if there is to be a Register for Landlords then by the same token there should be one for Tenants.

Freda Blogs

11:40 AM, 18th July 2023, About 10 months ago

Well said Tracy. We need more tenants like you who will stand up and say how it is for them.

Sadly I think the general public and many tenants buy into the anti landlord rhetoric and either don't realise or appreciate what they have until their landlord chooses or is forced to sell and they need to find alternative accommodation.

Reluctant Landlord

17:08 PM, 18th July 2023, About 10 months ago

Reply to the comment left by Tracy at 18/07/2023 - 11:08
I implore you to write to your MP and copy the same into Shelter and Gen Rent.

They are the ones that are apparently doing this for you and all other renters. A dose of reality from someone who this directly effects would show them the reality of what they are pushing...

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