The number of landlords planning to sell rented properties has reached its highest rate on record, new data suggests.
Polling by research consultancy BVA-BDRC found that in Q1 2023, 33% of private landlords in England and Wales said they planned to cut the number of properties they rent out. This is an all-time high recorded by BVA-BDRC and is up from the 20% who said they planned to cut the number of properties they let in Q1 2022.
By contrast, just 10% of landlords now say they plan to increase the number of properties they rent out.
The planned disinvestment comes despite demand being at a record high. According to the research, commissioned by the National Residential Landlords Association (NRLA), 67% of landlords said demand for properties from prospective tenants was increasing. In every region of England and Wales more than 70% of landlords said demand had increased, with the East of England recording the highest levels of demand.
The NRLA is warning that the supply crisis is set to deepen further without action by ministers. It is call for the Government to undertake a full review of the impact of tax rises on the sector and develop new, pro-growth policies.
Alongside this, when ministers end Section 21 repossessions, landlords need confidence that where they have good reason to end a tenancy – such as for tenant anti-social behaviour or rent arrears – the courts will consider and process such cases swiftly. At present it takes an average of around six months between a landlord seeking to possess a property via the courts to it actually happening.
Ben Beadle, chief executive of the NRLA, said: “Renters are bearing the brunt of the supply crisis. Without change, matters will only worsen over the coming year.
“The government needs to reverse its damaging tax hikes on the sector, which have discouraged the provision of the homes tenants desperately need. Moreover, responsible landlords need to have confidence that they can take back possession of their properties swiftly and effectively when they have good reason to when Section 21 ends.”
