UK's Landlords Look To Begin Portfolio Sell-Off
Despite some regions seeing big rent rises, it appears that 24% of landlords are looking to sell at least one of their rental properties in the near future.
The findings from Rightmove questioned landlords about their future plans and of the 24% looking to sell at least one property, the figure includes those who say they will be decreasing portfolio numbers and including those that say they will sell every property.
For landlords looking to sell, they say the most common reasons for doing so include legislation changes, including the ban on tenant fees and tax changes.
Rightmove says that the average landlord has a portfolio of three properties and 25% of landlords own just one rental home.
And while one in three is looking to increase portfolio numbers, most say that their property investment is delivering better returns than other investment vehicles.
Record asking rents are now being demanded
Rightmove has also revealed that tenants have fewer homes to choose from and record asking rents are now being demanded in all but two regions being monitored.
Researchers say that rents are now, excluding London, at an all-time high of £828 after seeing the largest quarterly rise since 2015 with rents increasing by 3.2%.
The only regions that have not seen a record rent rise in the last quarter are for landlords in Scotland and the North East.
In London, rents have risen by 5.6% and have now reached £2,104.
The firm's housing market analyst, Miles Shipside, said: "There are forces at play in the rental market, all leading to fewer homes and record rents from tenants, yet demand is remaining strong."
He says that housing supply may worsen should those landlords who say they are looking to sell up actually do so.
Mr Shipside explained: "The feeling among landlords planning to exit the sector is that of frustration and many tell us that the tax changes mean it's no longer financially attractive to keep property."
Overseas property investors head to London
Meanwhile, it's been revealed that the weaker pound and a slowing market is making the UK increasingly attractive to overseas property investors.
The findings come from Benham and Reeves, an estate and lettings agents, who have looked across London at the costs of property and converting their findings into respective currencies.
They say that buying property in London has risen by 0.48% between the EU referendum and July this year. The average price is £477,813.
However, for those buying in Euros, then property is 5.84% cheaper, for those buying with US dollars, it is 4.37% cheaper and Chinese buyers will find property has fallen in value by 1.52% thanks to currency movements.