top of page

It’s Official: Private Landlords are Selling Up

A home for sale with the post caption

A newly published report by the RICS has highlighted the scale of the problem about to hit the private rental sector. Experts predicted that many landlords would sell up as soon as government tax changes began to bite, but now it seems they are leaving in record numbers.

Falling Rental Stock

22% of RICS members have noticed a fall in the number of private rental properties in their area. In addition, landlords are not buying new properties. Experts suggest that it is mostly smaller landlords who are leaving the sector, as it is harder for them to generate a profit in a challenging market.

Many of them are mortgaged and the loss of mortgage interest tax relief is catastrophic. Some accidental landlords who have properties spare are not bothering to let them out because of the extra costs involved.

Rents Predicted to Increase in Some Areas

The RICS is predicting that a decrease in the number of properties for rent in some areas will push up rents, as there has been no decrease in the demand for rental accommodation. If anything, in some areas, demand has risen. The RICS suggests that rents could increase by as much as 15% by 2023, with the South West and East Anglia likely to be the hardest hit.

This will have a huge impact on poorer households who are not able to buy their own property and these are the people who will struggle the most with rising rents.

0 views

Related Posts

See All

Tenant demand has continued to increase

Sourced Properties Weekly List to Your Email inbox The August sentiment survey by Royal Institution of Chartered Surveyors (RICS) gauging the mood of agents, showed improvement in the lettings market.

Property Down Valued

In a recent survey by Bankrate UK, a mortgage comparison service, questioned buyers about their prospective purchases in the last 6 months in the UK. 46% revealed they had their prospective property d

Will Cardiff House Prices Crash?

House prices in the UK are starting to fall after 8 years of stable growth. This is according to recent house price indices. At the moment prices are still fairly stable, but market fluctuations have

bottom of page