A significant proportion of properties for sale in June were previously rental homes, according to new research by TwentyEA.
Substantial Increase in Former Rentals for Sale
Research firm TwentyEA has confirmed that 18% of properties listed for sale last month – amounting to 28,000 homes – had been listed for rent within the previous three years. This marks a 100% increase compared to the previous year and a third higher than June 2019. The findings support claims from rental property organisations and letting agents that landlords are exiting the sector at an unprecedented rate.
Katy Billany, Executive Director of TwentyEA, explains: “There’s 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.”
Market Pressure Eases Slightly
Despite these shifts, Billany notes that pressure in the rental sector is beginning to ease slightly. New landlord instructions have increased by 5% compared to Q2 2023, and lets agreed have risen by nearly 19%. However, stock levels and availability remain at historic lows, with demand significantly outstripping supply. As a result, rental prices continue to escalate.
Billany highlights that outside of London, there is, on average, only a month’s worth of stock available to rent. This scarcity means properties are quickly snapped up as soon as they become available.
Renters Face Tough Choices
TwentyEA’s report indicates that renters, much like those in the owner-occupied market, are having to adjust to higher prices. Many are either adapting to increased rental costs or finding themselves unable to afford homeownership, leaving them with little choice but to accept the substantial cost of renting.
This shift in the market underscores the broader challenges facing both landlords and tenants. The increased number of former rental properties now for sale reflects the ongoing turbulence in the buy-to-let sector. As landlords navigate rising costs and regulatory changes, tenants continue to face a competitive and costly rental market.
