Is the Private Rental Sector Losing Landlords?
Since December 2021, we’ve been hearing a lot about landlords exiting the Private Rental Sector. The narrative goes that rising interest rates, increased mortgages, and political factors have led to this trend. But is this really the case?
According to analysis conducted by estate agents Hamptons, buy-to-let landlords sold 35,000 more properties than they purchased in 2022. On average, the rental sector saw a decline of 66 buy-to-let properties each day last year. Additionally, Hamptons reports that 140,000 individuals stopped being landlords in 2022, and it is anticipated that another 96,000 will follow suit annually over the next five years as property investment portfolio holders approach retirement age.
However, despite the challenges posed by higher mortgage rates, there is still a significant demand for rental properties. Research conducted by mortgage firm Landbay indicates that seven out of ten buy-to-let landlords have no plans to sell any of their properties in 2023.
So, while the statistics indicate a decrease in the number of landlords and buy-to-let properties, it’s important to note that many landlords are choosing to remain in the market. The demand for rental properties continues to be strong, and this may be a contributing factor in their decision to stay put.
It’s clear that the landscape of the Private Rental Sector is evolving, and landlords are facing various challenges. However, the overall picture is more nuanced than a simple narrative of landlords exiting the market. The decision to continue or exit the sector depends on individual circumstances, market conditions, and personal choices.
Information courtesy of Which?
Here’s to Successful Property Investing.
Peter
Peter Jones
(ex) Chartered Surveyor, author and property investor
https://thepropertyteacher.co.uk
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