SHOCK: Letting agents report huge exodus of smaller landlords
A wave of landlords with small portfolios are quitting the PRS, according to a poll of letting agents by a major software provider.
Letting agents have reported a wave of small landlords fleeing the buy-to-let market, with many fearing they will lose all the independent property owners on their books.
That’s the shock finding from a state-of play survey of agents carried by property CRM software provider Alto.
Surge
One in three letting agents (34%) of the 250 polled, reported a surge in landlords selling up and walking away. And an overwhelming 93% said they were concerned about losing their independent landlord clients altogether.
Nearly three quarters (70%) of agents said at least some of their property owners had already sold off properties in the past year.
Exodus
Last week, the NRLA warned that accelerating numbers of landlords were selling up and putting more tenants ‘at risk of being made homeless’.
Households in the PRS threatened with homelessness due to a landlord exodus increased by almost a fifth since the end of last year.
And the RICS UK Residential Survey reported landlord instructions falling, registering a net balance reading of -21%.
Independent landlords are the lifeblood of the sector.”
Riccardo Iannucci-Dawson, CEO at Alto, says: “Independent landlords are the lifeblood of the sector. If we lose them, tenants lose choice and stability – and we risk pushing rents even higher.
“Letting agents are facing unprecedented pressure – from legislative upheaval to operational chaos.”
Recent research from Savills revealed that buy-to-let properties were being sold five times faster than investor purchases.
Savills found a major exodus of rental homes at a time when demand was very high and rents still rising.
The reason politicians are so ignorant is that of the 26 members of the cabinet only one has worked for the private sector.
I dont understand why this is a ‘SHOCK’.
We in the industry have ben signalling this for some considerable time now. The Renter Reform Act is going to have a huge detrimental affect for tenants.
Rental supply is decreasing. Demand remains very high as our population continues to grow.
What did the political class think was going to happen?