Almost two-thirds of surveyors have witnessed rising numbers of buy-to-let landlords looking to sell their properties.
The Royal Institute of Chartered Surveyors (RICS) reports that a similar number have seen a drop in the level of interest from new UK-based investors over the past six months. The body warns that along with higher mortgage rates, the Renters Reform Bill is pushing more landlords to quit the sector.
Eroded confidence
In its UK Residential Property Monitor for May, members across the country declare widespread sympathy for landlords and frustration at government policy. “Fear and lack of leadership from this government has further eroded confidence in the viability of this sector,” says Jason Coombes, at Cottons Chartered Surveyors in Birmingham. “Whilst we try to calm landlord clients, social and mainstream media fuel the panic caused by wave after wave of destructive legislation.”
“Government has been turning the screw on the PRS for years and recent media whispers of crisis are too little too late,” believes Neil Foster, at Hadrian Property Partners in Hexham. “It is a long road back from here to any chance of equilibrium between rental stock and demand.”
Landlords blamed
Stock levels continue to shrink as landlords dispose of their BTL investments, according to William Delaney, at Coopers of London Limited. “The dysfunctional court process in possession cases, egregious tax and compliance measures, and interest rates, are all taking their toll. No doubt landlords will then be blamed for soaring rents and lack of supply.”
It’s no better in Scotland, says Grant Robertson, at Allied Surveyors Scotland in Glasgow. “Rent freezes affect affordability and instead of flats changing tenants around the uni term, many are being offered to sale. The shortfall in student accommodation in Glasgow now looks apocalyptical through the summer for the start of term.”
