Almost half (47 per cent) of landlords have already sold off some properties or are planning to do so over the next year, research from Goodlord and Vouch has revealed.
The research, ‘State of the Lettings Industry Report’, found that 30 per cent of the landlords surveyed said they had either sold one of their rental properties or put one on the market in the past year.
A further 17.4 per cent of landlords said they were considering reducing their portfolio in the coming year, meaning almost half of all landlords either are planning to, or are leaving, the property market.
Goodlord CEO, William Reeve, said: “This year’s report doesn't give us a lot to be cheerful about.
“The whole sector is under intense pressure and the light at the end of the tunnel remains fairly dim.
“Overall, the country needs more rental homes to alleviate the supply/demand imbalance - which in turn requires house building, streamlined regulations, and better landlord incentives.
“While letting agents themselves will generally continue to be resilient - as they have so consistently demonstrated in recent years - neither landlords nor tenants have much to be optimistic about right now.”
When asked what was driving their desire to leave the market or reduce the size of their portfolio, 56 per cent of landlords identified legislation, such as the Renters’ Rights Bill and the abolition of section 21, as the primary reason.
In addition, over half of landlords (52 per cent) also said new rules around energy efficiency standards would be a reason for leaving the sector.
Rising mortgage rates, increased arrears, and tax changes are also driving landlords to sell up.
The report also found that this exodus of landlords came despite a rise in the amount of rent they collected.
It reported that rents have continued to surge in 2024, with the average monthly rent per property in England hitting £1,470 per month in July - the highest average ever recorded by Goodlord’s Rental Index.
Additionally, over 80 per cent of landlords said they had increased the rent on one or more of their properties over the past year.
tom.dunstan@ft.com
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