Rightmove has revealed this morning that nearly a quarter of landlords it canvassed are reducing their portfolios as the government’s assault on the buy-to-let sector continues.
The increased costs following the tenant fees ban, drastic cuts to mortgage interest relief and reductions in expenses landlords can claim for wear and tear mean that, of the landlords who talked the portal, 13% said they are planning to shrink their portfolios while an astonishing 11% reported plans to sell their entire property holdings.
The number of properties available to rent on Rightmove has dropped to 13% below the last recorded low four years ago.
The consequent reduction in stock within the lettings market is pushing up rents, particularly in London.
Asking rents outside the capital over the past three months have increased by 3.2% to £828 a month per property, while in London they have jumped by 5.6% to £2,104 a month.
“There are a number of forces at play in the current rental market, all leading to record rents for tenants and fewer homes to choose from, yet demand remains strong,” says Rightmove’s housing market analyst Miles Shipside (left).
“Worryingly for tenants there are signs that the stock shortage may worsen if some landlords follow through with their plans to sell up, though an increase in plans for build to rent properties may help to fill some of the gap.
“The overall feeling among those landlords who are planning to exit the market is one of frustration with many telling us that the tax changes mean it’s no longer financially attractive to keep their properties.”