Big Rise In Landlord Numbers Leaving The Sector
Along with rent rises for tenants, there's been a big jump in the number of landlords who are leaving the rental market, according to a report.
The findings from Arla Propertmark are based on December 2018's figures and they show that the average letting agent branch in London saw six landlords sell their properties and leave the buy to let market.
The national average for selling up and leaving the BTL sector was four landlords leaving the sector per branch in December.
Arla's chief executive, David Cox, said: "Landlords across the country over the last few years have been pushed out of the market by increasing legislation and costs and new investors are deterred from entering.
‘Landlords receiving their first tax bill’
"Last month's results show the issue has intensified in London, which may be the result of landlords receiving their first tax bill that incorporates the tax increases from the mortgage interest relief changes that came into force last year."
He added: "As rental accommodation supply falls further, tenants will face growing competition for properties and this will push up rents on well-managed, good quality properties and leave low income and vulnerable people in the hands of criminal and rogue operators."
Mr Cox also said that the situation for renters in London will become more difficult should the capital's Mayor, Sadiq Khan's pledge to bring in rent controls, come to fruition.
He said that more landlords will be forced to sell up if this was the case.
BTL mortgage rates show a 'mixed picture'
Meanwhile, the latest research from one online mortgage broker highlights that landlords accessing buy to let mortgage rates are seeing a 'mixed picture'.
Property Master says that the average cost in four of the six categories they monitor for a fixed rate BTL mortgage have risen over the past month.
However, two categories have seen a fall in costs.
The firm's chief executive, Angus Stewart, said: "Brexit clouds the outlook for interest rates and commentators are pencilling an interest rate move upwards in May.
‘Situation is more confusing for landlords’
"The situation is more confusing for landlords as this is the start of the year and a flurry of new deals will come out from lenders with some being better than others."
He added that landlords looking for a new mortgage deal should appreciate that some lenders are setting higher interest cover ratios with some requiring the rent to cover at least 145% of mortgage repayments while others do not.