Cov property expert says landlords are selling up and leaving rental market

Cov property expert says landlords are selling up and leaving rental market




A Coventry property expert says landlords are facing selling their properties as the buy-to-let-market declines. Jag Chaggar says the cause is due to less homes available because owners are selling to offset losses from tax changes and rent increases.

Across the UK, there has been a widespread landlord sell-off, particularly in Scotland. Data from luxury estate agent Hamptons revealed that landlords were on track to have bought the fewest homes since 2010. This correlates with the report from Rightmove which states that new seller asking prices fell by 1.7% of £6,088, last month to an average of £362,143.

In the UK, the percentage of dwellings sold by landlords decreased from 15.7% in 2022 to 14% this year. Around 11.2% of all residences listed for sale this year have been purchased by investors, down from 15.7% in 2015.

Read more: Should I obtain a fixed-rate mortgage with a two or five-year term? Coventry property expert tells all

According to Hamptons, since 2016, individual landlords would have sold 294,300 more homes than they had purchased, more than the combined sum of all the homes in Manchester and Cornwall. Jag says the appeal of buy-to-let investments have ‘diminished’ due to changes in home emission rules, higher mortgage costs and altered taxation of buy-to-let incomes,

On the other hand, landlord-owned properties must have an energy performance certificate (EPC) rating of C or above from 2028. But some landlords have already decided to sell up because it is estimated that thousands of homes will need costly improvements to comply.

At Tutis Estates, Jag anticipates a 25% increase in rent by the end of 2026 due to a shortage of available properties in Coventry. The blow for landlords is being lessened by strong rental growth, but are still depending on their equity and cash reserves to get by. Rather than selling all their properties, portfolio investors are juggling their holdings by selling one or two to lower their mortgage debt on the remaining properties in their portfolio.

However, according to Hampton, 10% to 20% of landlords who were recently forced to remortgage are now losing money on their investment. Throughout the first 10 months of 2023, there were 43% fewer rental properties available than during the same time in 2015.


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