Clear evidence emerging that landlords exiting says big agency
Pressure groups have labelled a landlord exodus as ‘scaremongering’ but the latest data from Hamptons is not so easy to dismiss.
Hamptons says landlords’ share of house purchases has fallen below double digits for the first time since the agency’s records began.
As a result of the rising tax and legislative burden, landlords’ purchases in January made up just 9.6% of the market. That’s below the 10.6% recorded at the height of the pandemic (2020) says Hamptons’ Head of Research Aneisha Beveridge (main image).
New purchases
At 7%, the worst affected area in England is London. In Scotland, however, the numbers were even more concerning – as a result of the increase in Stamp Duty rates (or ‘Additional Dwelling Supplement’) from 6% to 8% (December 2024), Scotland recorded that just 4.6% of home purchases were by a landlord in January.
Beveridge says: “New purchases by landlords have been depressed by increases in Stamp Duty rates towards the end of last year and the prospect of tighter regulation in the form of the Renters’ Rights Bill.
“While purchases by this group haven’t completely dried up, it’s looking like higher Stamp Duty rates have reduced the share of homes sold to landlords by between 10% and 20%.”
This is all in response to the continuous bombardment of costs placed on landlords.”
Nathan Emerson, Chief Executive of Propertymark, said: “It is concerning that more is not being done to make the private rental sector more attractive for current and future landlords.
“The dwindling supply of properties against a backdrop of ever-increasing demand from tenants is making it difficult for aspiring renters to find a home.”
He added: “This is all in response to the continuous bombardment of costs placed on landlords, including rising taxes and regulations”.
Read more about landlords selling up.
This is obviously incorrect as Mr Pennycook can see no evidence of landlords leaving the sector, and as we all know government ministers are never wrong.
This will only be a surprise to the Tory and Labour clown show. You wouldn’t want to be a tenant now.
This is no surprise at all, in the 36 years I have been a letting agent I have never seen landlords sell up in the numbers they are now. It is gratifying and depressing in equal measure to have such a respected firm provide such indisputable evidence – not that the government will take any notice.
I agree with Ms Beveridge, my experience is ‘buy-to let’ enquires dried up to a trickle some time ago and landlords are exiting the market.
Im hoping it will stabilise as the irony of the situation is, as more landlords leave and our population growth largely driven by mass immigration continues unabated; demand will remain very high and with an even lower supply will push rental yields ever higher for those that remain.
The law of unintended consequences. Who would have predicted this would happen…?