Quarter of landlords looking to ‘sell up’ over next year

Survey reveals a third reported low levels of confidence in the private rented sector.

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Of almost 2,500 landlords who responded to a survey by the Residential Landlords Association (RLA), over 25% said they were planning to sell at least one property over the next year.

Published today (2nd May), the RLA has revealed that the proportion of those saying they were planning on selling was the highest since 2016.

The survey also revealed that 23% of landlords reported an increase in the demand for rental property over the previous three months, with 57% reporting it to be stable.

As reported by 24housing earlier this week, research from property investors BondMason revealed that despite seeing strong returns for the last few decades, most private landlords would have done better if they had sold their properties three years ago.

This is further highlighted in the RLA’s release of reports, with a third of landlords stating low levels of confidence in the private rented sector over the next 12 months.

The results follow the publication of government data earlier this year, which found that that 10% of private landlords, representing 18% of tenancies, plan to decrease the number of properties they rent out, with a further 5% of landlord’s reporting a plan to sell all their properties.

The Royal Institution of Chartered Surveyors has warned that the “imbalance” between supply and demand in the rental market is expected to see rent increases averaging 3% per annum over the next five years.

The RLA also argues that it is vital that landlords retain confidence to provide the homes to rent that are desperately needed, ensuring new regulations governing how landlords can regain possession of their properties in legitimate circumstances are “fair and effective” for both landlords and the tenants.

David Smith, policy director for the Residential Landlords Association, said: “All the talk of longer tenancies will mean nothing if the homes to rent on not there in the first place.

“The government’s tax increases on the sector are already making it difficult for tenants to find a place to live, with many landlords not renewing tenancies.

“If rushed and not thought through, planned changes to the way landlords can repossess properties risk making the situation even worse.

“Action is needed to stimulate supply with pro-growth taxation and a process for repossessing homes that is fair to all.”

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