Landlord exodus from the PRS as uncertainty and costs rise

Landlord exodus from the PRS as uncertainty and costs rise

0:05 AM, 19th July 2024, About 13 hours ago 2

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There’s been a surge in landlords exiting the private rented sector (PRS) with a dramatic rise in the number of properties previously listed for rent that are now up for sale.

According to new data from TwentyEA, its analysis shows that in June nearly one in five properties listed for sale had been rented out in the past three years.

That’s just over 28,000 properties which is 100.6% higher than in June last year and 34.6% higher than in June 2019.

It’s also 27.4% higher than in May when Rishi Sunak called the General Election.

‘Significant uplift in the number of landlords selling up’

TwentyEA’s executive director, Katy Billany, said: “There’s no doubt our data shows a significant uplift in the number of landlords selling up, either reducing their portfolio size or possibly exiting the sector completely.

“There’s currently a lot of uncertainty in the buy to let market around what the change in government means for landlords but they have also been hit by steep interest rate rises and rising costs generally, so it’s likely there are several factors at play here.”

Complex picture of the UK’s property market

The report suggests a complex picture for the UK’s property market with some sectors showing signs of recovery, while others are struggling.

The number of new properties listed for sale and sales agreed have both increased compared to the previous year.

However, the lower end of the market, crucial for first-time buyers, has seen a decline due to limited stock and affordability concerns.

The impact of rising interest rates and living costs is also evident in who is buying property.

Exchanges have increased for older demographics

Exchanges, a key market indicator, have increased significantly for older demographics who are likely to be mortgage-free and have more flexibility to move.

Conversely, younger age groups face substantial financial pressures and have seen a dramatic reduction in exchanges.

The analysis also found that the volume of property exchanges has declined across all income brackets below £50,000.

This highlights, the firm says, the widespread impact of the current economic situation.

Contact Landlord Sales Agency


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Cider Drinker

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8:18 AM, 19th July 2024, About 5 hours ago

I can only assume this is an INTENDED consequence of government and charities’ actions. A mass exodus of private landlords was entirely predictable.

It’s good news for those former tenants that can afford to buy and actually want to buy. It’s really bad news for millions of tenants that choose to rent or cannot afford to buy.

dismayed landlord

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9:41 AM, 19th July 2024, About 3 hours ago

It’s the constant uncertainty that is the killer. Who knows what any government will dream up next. That uncertainty causes anxiety and frustration- leading to stress. Next step TIA and heart issues. It mattters not what return you may make as a PRS landlord - if you ain’t here to enjoy it and spend it then why stay in it?

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