More landlords exiting the market

Jessica Nangle

April 25, 2017

Landlords are increasingly selling their buy-to-let properties, ARLA Propertymark’s Private Rented Sector (PRS) report for March shows.

Landlords sold four buy-to-let properties per branch, up from three in February.

The number of tenants negotiating rent reductions also rose month-on-month in March.

There was increased demand from tenants despite the supply of available properties remaining the same.

David Cox, chief executive of ARLA Propertymark, said: “It’s concerning that, despite supply increasing over last year, stock failed to return to the market after dipping in February.

“The introduction of mortgage interest relief means the market is becoming less and less attractive to investors and it appears some landlords are, as we predicted, choosing to exit the market rather than pay the higher taxes.

“What’s more, two thirds (66%) of our members are concerned the government will introduce even more landlord taxes in 2017, which will only further dampen supply.

“However, it’s positive that more tenants are taking action and negotiating rent reductions before the consultation ends and they see their rents increase.”

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