Landlords are increasingly selling up
Landlords in the UK are selling up their buy to let investments and leaving the sector but it's not as many as has been feared.
The findings from franchise letting agents Belvoir shows landlords are increasingly leaving the property sector but not at the rate that's been predicted in other studies.
Their findings also underpin research from Arla Propertymark which shows that the number of landlords leaving the rental sector in the East of England is 100% higher than the national average. They say other regions will follow suit.
According to Belvoir’s chief executive, Dorian Gonsalves, there's been a slight rise in the number of landlords selling up to three properties from 48% to 52% over the year.
He added: "Our conclusion is that the numbers of landlords selling property is growing, but not at the rate some research is suggesting."
‘Reasons for exiting the market given by landlords’
"The main reasons for exiting the market given by landlords are tax changes, increasing legislation, low investment returns and landlords moving back into the property."
He added that Brexit uncertainty is also having an effect on the market.
Belvoir also reports there's no real change in void periods for the third quarter of this year with eviction rates also remaining very low.
They say that half of their offices carried out no evictions at all in the third quarter.
Mr Gonsalves added: "Our research shows that a tenant is staying in their rental home for the length of time that is suiting them.
"In 2008, most offices reported that most people stayed for between 13 and 18 months and this year we have seen this increasing to between 19 and 24 months. This suggests that two-year tenancy agreements are more likely to be what tenants are preferring rather than a three-year agreement being discussed by policymakers."
Impact on landlord enthusiasm
In the Arla Propertymark research, they also highlight that increasing landlord costs and continuing legislative changes have also had an impact on landlord enthusiasm.
Arla’s chief executive, David Cox, said: "78% of our members believe that landlord numbers in the private rental sector will fall even further in 2019 as they are driven out with growing costs.
"It's very likely, therefore, that we'll see the national average growing in line with what's being seen in the East of England.
"We are striving to improve the private rental sector for consumers but the only thing that will create a fairer and better market is a sharp increase in supply."