Landlords around the UK are increasingly looking to sell one or more of their investment properties over the coming 12 months, according to a survey.
The Residential Landlords’ Association (RLA) questioned nearly 3,000 landlords about their future plans.
Their findings reveal that the current housing crisis could become worse as fewer properties are available to rent.
The RLA says its research reveals that one in five landlords are looking to sell at least one of their properties which outnumbers the 18% of landlords say who say they are looking to buy extra properties for renting out.
Landlords have seen demand for rental homes increasing
Over the past three years, the RLA says that one in three landlords have seen demand for rental homes increasing.
Also, 47% of landlords say they will be looking to increase rents since there is an imbalance in the supply and demand for homes to rent.
The landlords who are looking to push up rents point out that the changes to mortgage interest relief which will hit profits is their main reason for increasing rents.
The RLA's chairman, Alan Ward, said: “We need pro-growth taxation that supports and encourages landlords to provide good housing and invest in the homes for rent we desperately need.
“The punitive tax changes have discouraged investments by most of landlords who want to provide homes.”
Landlords see BTL costs fall
Meanwhile, landlords are seeing their buy to let costs fall ahead of the changes being introduced by the Prudential Regulation Authority.
Mortgage Brain says in its latest product data analysis that the cost for a two-year fixed buy to let purchase product is now 4% lower than in May.
Their research also reveals that five-year fixed rates are now down by 3%.
The firm's chief executive, Mark Lofthouse, said that these falling costs may not last, however.
‘Outlook for investors is favourable’
He explained: “The outlook is favourable for investors with buy to let mortgage costs falling despite forthcoming changes to buy to let lending.
“However, this may change soon and over the next quarter, it will be interesting to see how the BTL story unfolds.”
The news follows data from Mortgages for Business which said there has been a fall in the mortgage rates for buy to let products but at a lower rate.
The company’s chief executive, David Whitaker, said: “Our data shows that two-year fixed buy to let rates have fell by 1.4% since May. The reduction is still good for investors though we have seen growing usage of percentage-based arrangement fees and a fall in fee-free products."
