The exodus of landlords from the private rented market is rapidly turning into a crisis as the government’s ‘failed’ policies wreak havoc, it has been claimed.
The Residential Landlords Association (RLA) claims more landlords are now selling up than those who are buying after it canvassed 2,700 of its members.
It has also called for the additional Stamp Duty levy on second homes and buy-to-let properties to be scrapped.
Over the next 12 months 31% said they plan to sell a minimum of one property but only 13% said they’d be buying.
Landlords are also exiting despite healthy demand for rental properties; 25% of the landlords the RLA spoke to said demand in their area was rising, while 41% said there had been no change and 15% said it had dropped.
The worrying figures from the association reflect similar data from Rightmove and RICS both of which have recorded weakening supply and increasing demand in the private rented market.
Commenting on the government’s attempt to free up rental stock for first time buyers, the RLA says: “latest figures however show that this strategy has been a failure”.
“Those who argue that a smaller private rented sector is good for tenants wanting to buy a home are plain wrong,” says David Smith, Policy Director for the RLA.
“The government’s policies are choking off the supply of homes to rent whilst demand remains strong. This is only making life more difficult and potentially more expensive for those looking for somewhere to live.”