Homes suitable for first-time buyers could ‘flood the market’ in the coming year as one in five (19%) landlords look to sell, the National Landlords Association has predicted.
National Landlords Association data indicates that 45% of landlords intend to sell individual flats, with a third (33%) offloading terraced homes – both of which represent options for first-time buyers.
Richard Lambert, chief executive of the National Landlords Association, said: “These findings sound like positive news for potential new homeowners, but the reality is not everyone wants, or is in a position financially, to buy.
“In fact, if all these homes are sold as planned then it will lead to a significant fall in the supply of property available to those who choose to rent, or have no other option but to rent.”
The National Landlords Association has produced a video and discussion paper called ‘the hustle for homes’ to talk about the relationship between landlords and first-time buyers in the market.
In contrast to the types of properties landlords are expected to sell, the video and paper concluded that landlords are seeking out larger properties rather than terraced or semi-detached houses typically suitable for first-time buyers.
Rob Barnard, director of sales at Pepper Money, said: “We have seen little evidence so far of landlords disposing of assets in any great numbers, but if the estimations from the NLA are correct, it will certainly provide opportunity for even more first-time buyers to take the first rung on the housing ladder and could restrict the options for tenants.
“The bigger issue, however, remains the under-supply of homes, whatever the tenure.
“The Housing White Paper last year said that we need up to 275,000 more homes every year just to keep up with population growth and tackle years of undersupply and it is this dynamic that will mean it continues to be a competitive environment for first-time buyers and renters alike.”