23^rd May 2018

A lettings trade organisation claims that around 380,000 landlords could be selling at least one property and if this happens then the housing sales market will be inundated with available homes.

The organisation says that 380,000 landlord represent 19% of investors in the private rented sector and that just under a half are considering selling a flat and a further third are planning to sell a terraced house.

Flats and terraced properties are ideal properties for first time buyer to take the step onto the housing ladder; although it is great news for them it will not be as good for potential sellers as the 'flood' may have an impact upon pricing.

Very surprisingly 7% of landlords planning to sell a property have no intention in selling to other landlords.

A spokesperson for the organisation says: “These findings sound like positive news for potential new homeowners, but the reality is not everyone wants, or is in a position financially, to buy.

“In fact, if all these homes are sold as planned then it will lead to a significant fall in the supply of property available to those who choose to rent, or have no other option but to rent.

“Everyone seems to have a gut instinct about the extent to which they feel landlords and first time buyers compete for homes in the UK, but homeownership is a highly emotive issue so the facts are often overlooked."

The spokesperson added: “There’s certainly no denying that competition exists, but the significant barriers to homeownership are more likely to be the high cost of a deposit or ability to access mortgage finance.”

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