Buy to let sell off as rental properties flood the market

Buy to let sell off as rental properties flood the market

0:03 AM, 16th October 2024, About a month ago 5

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The number of buy to let properties on the market has rocketed over the last year, according to new data.

Figures from TwentyEA reveal, 11.3% of all new properties listed for sale in Q3 2024 had previously been available for rent within the last three years.

This is more than double the 6.8% recorded in Q3 2023 and a significant rise from 8.9% in Q3 2019.

Sharp increase in London

The analysis shows that London led the trend in Q3 2024, with 47.2% of all new properties listed for sale having been previously let, a sharp increase from 27.1% in the same period last year.

While this trend is particularly concentrated in Inner London, new data reveals that every region in the UK saw a rise in previously rented properties entering the sales market between July and September 2024, compared to Q3 2023.

In the East Midlands, the share of previously rented homes for sale jumped from 5.2% in Q3 2023 to 8.4% in Q3 2024. In Wales, it went up from 4.0% last year to 6.1% this year.

Supply of properties is higher than at any point in the last six years

In the residential sales market, the average asking price of properties for sale across the UK in Q3 2024 was £436K, up by £1.8K (0.4%) from Q3 2023 but notably down £20K from Q2.

This drop reflects the mix of property stock being listed as new instructions, rather than the actual prices achieved.

At the same time, the supply of properties for sale for Q3 24 is higher than at any point in the last six years at 456,902, up from 419,807 in Q3 23 – a rise of 9%. Exchanges are also up by 10.9% compared to Q3 2023 as the market continues to bounce back.

Labour’s budget a few weeks away

Katy Billany, executive director of TwentyEA said: “The increase in sales is attributed to lower mortgage rates, which have fuelled a rise in demand among homebuyers. The Bank of England’s recent move to hold the base rate steady has also provided stability to the market. Furthermore, it demonstrates that the demand has not been affected by July’s parliamentary election.

“However, for some homeowners, the financial duress brought about by fixed-rate mortgages will be forcing a sale based on unaffordability.”

Ms Billany adds many buyers will be waiting until the upcoming budget before deciding what to do next.

She said: “As always confidence and sentiment underpin the market and while sales have increased a lot since last year, many prospective buyers will still be holding back until after Labour’s Budget which is now just weeks away. Exactly how this impacts property owners will dictate whether the market continues to accelerate”.

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Cider Drinker

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12:48 PM, 16th October 2024, About a month ago

If it’s a flood today, wait for the tsunami.

I expect many more properties to be sold as soon as tenants leave.

Only 1,764 days to go.

SAM UK

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16:59 PM, 16th October 2024, About a month ago

Make floods great again!

Imout Ofhere

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17:27 PM, 16th October 2024, About a month ago

Just got word that completion date on another sale is 23rd, can't wait ....previous long term tenants in limbo, blame the governments of the day.

5h

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22:45 PM, 17th October 2024, About a month ago

Last one left to sell, hope it doesn't come to effect immediately.

Could not risk it: next rent control, you can’t sell for any reason, you have to give it away.

Alltaf Samji

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6:36 AM, 18th October 2024, About a month ago

Rental properties sold are unlikely to be purchased by prospective landlords in the current climate. Labour are making an existing PRS shortage worse! The new rent reforms are poorly thought out and only being rushed through to fulfil an election promise. How myopic can they be??

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