New research commissioned by the National Residential Landlords Association (NRLA) reveals a concerning trend among private landlords. The study indicates that private landlords in England and Wales are more than twice as likely to sell properties as they are to purchase them. In the second quarter of 2023, 12% of landlords sold properties, while only 5% purchased properties during the same period.
The survey findings also highlight that 37% of landlords are planning to reduce the number of properties they let in the coming year, marking an all-time high in the proportion of landlords looking to downsize their portfolios. In contrast, only 8% of landlords plan to increase the number of properties they let in the market.
Interestingly, despite the decrease in rental properties, tenant demand remains strong. Two-thirds (67%) of landlords reported an increase in tenant demand in the second quarter, reaching another record high.
The NRLA warns that urgent action is needed from the government to address the supply crisis. It calls for the reversal of tax changes that discourage investment in the private rented sector (PRS), such as the 3% stamp duty levy on homes intended for rental purposes and the restriction on mortgage interest relief for long-term rental homes.
Ben Beadle, the CEO of NRLA, emphasizes the need for assistance for renters and landlords, stating that the current tax system punishes landlords for providing essential rental homes while favoring holiday lets. Beadle urges the government to take immediate action to prevent the worsening of the supply crisis over the next twelve months.