New data reveals a rise in the number of landlords selling up in April this year.
According to ARLA Propertymark’s Private Rented Sector Report for April 2018, letting agents saw the highest number of landlords selling their buy-to-let (BTL) properties since records began in 2015.
The number of landlords leaving the market rose to five per branch - an increase from four in March.
Until March 2018, the number of landlords exiting the market had been consistent at three per branch since April 2017.
While the number of landlords exiting the market has grown, so have the amount of prospective tenants registered per member branch - increasing by 9% in April.
Previously, in March, lettings agents had an average 66 tenants on their books, compared to 72 in April.
This is the strongest demand seen since September, when there were 79 tenants registered per branch.
The study also shows that the number of tenants experiencing rent increases was 26% in April – the highest since September 2017 when 27% of landlords put rents up for tenants.
Year on year, this has risen by 2% from 24% in April 2017.
Supply of rental stock
The number of rental properties letting agents managed in April remained the same as in March, with 179 on average per branch. Year on year, however, this figure is low, when agents managed a similar 185 per branch.
Commenting on the data, David Cox, Chief Executive at ARLA Propertymark says:
“The barrage of legislative changes landlords have faced over the past few years, combined with political uncertainty has meant the BTL market is becoming increasingly unattractive to investors. Landlords are either hiking rents for tenants or choosing to exit the market altogether to avoid facing the increased costs incurred. This in turn is hitting renters most, at a time when a huge number of people rely on the rented sector, and leaves us with the question of where will these people find alternative homes?
“As demand for private rented homes massively continues to outstrip supply, the Government can no longer divert its attention from the broken housing market. The recent news that the Government is regulating the industry is a step in the right direction, but ultimately we just need more homes.”