Research carried out by Aldermore suggests that nearly a third of landlords
of thinking of quitting the private rental sector. This decision is said to
be pushed by rising maintenance costs and the introduction of tighter
regulations.
Property Industry Eye says, “Nearly seven out of 10 (69%) landlords say
that private landlords exiting the market would hurt the quality of
properties.”
What is bringing landlords to the brink of quitting?
Property118 says that, “34% of landlords point to soaring maintenance costs
as a primary concern, matched by an equal number who are worried about the
impact of the impending Renters’ Rights Bill.
“Also, 29% are influenced by the stamp duty increase for buy to let
properties, announced in the Autumn Budget, pushing them towards selling
their investments.”
Threats to the private rental sector
If these landlords carry out what is to be expected, then it could place
further strain on private rental properties due to shrinking numbers being
made available.
As tenant demands increase and housing options available decrease, students
– second and third years in particular – trying to find homes will also
feel the pressure as they may find it harder to find a private house.
According to Property Industry Eye, “seven out of 10 (70%) who recently
moved reported that it felt like they were competing with more people when
looking for a property.
“One in four recent movers (27%) have had to move as their landlord sold
the property that they previously lived in.”
Due to scarcity of PRS homes, tenants can expect an increase in rent as a
result. This promotes new worries for tenants of having to move home or
share larger houses with more tenants.
Landlords selling up
Property118
reports that action has already been taken by some property owners, 29% of
which have “disposed of part of their holdings over the past year, averaging
a 32% reduction in their portfolios.”
All of this is occurring despite a surge in tenancy demand.
However, landlords are feeling as though they are being blamed unfairly for
issues that they don’t have a lot of control over. The issues stem from
much broader problems and for some, selling up in the face of rising
maintenance costs is just the best option for them.
Renters’ Rights Bill
Jon Cooper, director of mortgages at Aldermore, said: “Aldermore welcomes
the government’s efforts to increase transparency within the sector and
recognise the role that good landlords play through the Renters’ Rights
Bill, but this must be done in a way that is proportionate and does not
create undue additional strain on landlords.”
