Last week, we reported about the new figures from the National Landlords Association (NLA), showing that approximately 380,00 landlords intend to sell their investments. With this being a substantial 39% of total landlords as it currently stands, this could have massive repercussions to the industry.
This mass decision is thought to be partly influenced by problem tenants. Data from a survey commissioned by MakeUrMove has revealed that of the 1,000 landlords who took part, 47% have had issues with tenants not paying rent on time. With this pressure on many of the ‘good’ landlords, they feel they may have no choice but to sell on their properties.
Following on from this announcement, Jeff Knight at Foundation Home Loans has commented: “A mass exodus may be an exaggerated view of the market. While the potential for thousands of homes becoming available for first-time-buyers is what the market needs, we have to consider the fact that firstly, not everyone is in a position to buy and secondly, it’s important that good landlords don’t make a knee-jerk reaction to exit in the face of the wave of tax and regulatory changes.
“Yes, the cut to stamp duty was a huge leg-up for first-time buyers, but we need to ensure there is quality property available for those who have not quite been able to get over the line or do not find the idea of buy-to-let appealing.
“Buy to Let has certainly become more complex over the years, but seeking the help of a financial adviser will help landlords to navigate the hurdles, professionalise their approach and ultimately play their role in the stepping stone to ownership.”
Alexandra Morris, managing director of MakeUrMove, the real estate rental agency, has also commented: “The small percentage of landlords who are professional will forecast for costs and unexpected events. But most landlords aren’t, and rely on rental income to meet mortgage payments. More of these landlords are planning to sell up.”