28th
Sep 2023
Relentless attacks on the private rental sector have seriously impacted landlord investment according to a chartered surveyors latest bi-monthly survey.
The recent survey of over 500 valuers and surveyors found that around 79 per cent said there is a distinct fall in landlords purchasing new properties and 50 per cent of surveyors said that there has been a noticeable increase in landlords who are making plans to streamline their portfolios or have left the sector over the last twelve months.
The firm says: “These challenges could have several implications for the UK housing market if left unaddressed, including a reduction in the supply of rental properties and an increase in rent for tenants already facing a cost of living crisis.”
Just under half (44 per cent) of those who took part in the survey said that demand outweighs supply and reported a steady decline in numbers of rental instructions in the market.
It is no wonder that the survey finds that properties are being let far more quicky due to demand at the asking rental price with a trend of ‘gazumping’ by tenants competing against others for a property. Around 45 per cent of surveyors in London said there has been an increase of tenants willing to pay above asking rental prices.
Rob Owens, head of research at the chartered surveyors, says: "The buy to let market is facing a number of challenges at present, with rising mortgage rates the biggest concern for landlords. This is leading to a decline in landlords participating in the sales market and an increase in landlords looking to rationalise their portfolios or exit entirely.
"These challenges could have a significant impact on the UK housing market, reducing the supply of rental properties and pushing up rents for tenants. It is important that the government takes steps to support the buy-to-let market and ensure that it remains a viable investment option for landlords.”
On the homes’ sales front the survey finds although there is always a continual stream of homes up for sale but in the majority of cases are now taking much longer to close and top property market sellers are having to ‘consider opportunities’.
There is also a raft of new ‘golden ticket’ incentives for prospective buyers such as support with deposit contributions, stamp duty/land duty tax payments and legal fees.
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