BTL landlords ‘faced with further regulatory pressure’ flee the market

There has been a significant increase in the number of landlords selling property, particularly in Wales, new research shows.

Data collected from Propertymark’s members for its January Private Rented Sector Report shows a snapshot of pressure in the rental market, most notably in Wales.

Welsh agents reported the highest overall figure of new applicants registering at an average of 313 per member branch but worryingly reported the highest number of landlords exiting the private rented sector at five per member branch. This is more than double the UK average of two.

Factors such as high sale prices and the impending changes due to be introduced through the Renting Homes (Wales) Act could be contributing to this.

The widening supply-demand imbalance meant 74% of member agents reported rent prices increasing across the UK, which has sharply increased from 56% in December 2021 which prior to January 2022, had continued to fall for four consecutive months.

Propertymark’s CEO Nathan Emerson said: “Our latest report shows an unprecedented spike in new applicants registering per member branch with a 140% increase in January compared to December.

“Setting this figure beside the small increase in the average number of new properties entering the market in January, there seems to be nowhere near enough private rented homes available.

“Wales is seeing the greatest number of landlords exiting the sector and interestingly, this could come as no surprise to many agents and landlords. With several changes on the horizon from the implementation of the Renting Homes (Wales) Act, landlords in Wales will be faced with further regulatory pressure.

“Coupled with the extremely high demand within the sales market in areas across Wales, these could well be contributing to the number of landlords exiting the sector.”

SOURCE: Property Industry Eye | FEBRUARY 25, 2022 | MARC DA SILVA