Surveyors note an increase in the number of privately rented homes entering the sales market
Nearly eight in 10, or 79% of, surveyors have noted a decline in landlords planning to buy new investment properties, valuation provider e.surv has reported.
Results of its latest Property Watch survey has also revealed that half of surveyors saw a rise in landlords planning to rationalise their portfolio or exit entirely over the last 12 months.
These challenges, e.surv pointed out, could have several implications for the UK housing market if left unaddressed, including a reduction in the supply of rental properties and an increase in rent for tenants already facing a cost-of-living crisis.
The report – a monthly survey tracking the views of e.surv surveyors on the UK property market, showed that demand for rental homes continued to outstrip supply across the UK, with 44% of respondents reporting falls in the stock of rental instructions coming to market.
Properties are also being let more quickly, and typically, at or above the asking price in the most active rental markets.
Around 45% of London-based surveyors reported an increase in rental prices let above the asking price, with 40% seeing the time to let a property shorten.
These stresses in the buy-to-let market and their impact on tenants and landlords, e.surv said, continued despite the government’s recent announcement to scrap plans for new minimum energy standards.
“The buy-to-let market is facing a number of challenges at present, with rising mortgage rates the biggest concern for landlords,” commented Rob Owens, head of research at e.surv. “This is leading to a decline in landlords participating in the sales market and an increase in landlords looking to rationalise their portfolios or exit entirely.
“These challenges could have a significant impact on the UK housing market, reducing the supply of rental properties and pushing up rents for tenants. It is important that the government takes steps to support the buy-to-let market and ensure that it remains a viable investment option for landlords.”
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