New research from the National Residential Landlords Association (NRLA) reveals that more landlords are selling their buy-to-let properties than purchasing new ones, raising concerns over the availability of rental homes in England and Wales. Ben Beadle, the NRLA’s Chief Executive, warns that without a significant policy shift, tenants will face increasing difficulties in securing affordable housing.
Landlords selling at double the rate of buyers
The NRLA’s latest study, conducted by Pegasus Insight, highlights a sharp imbalance in the property market. Over the past 12 months, 19% of landlords reported selling at least one rental property, compared to just 8% who acquired new buy-to-let homes. The disparity is compounded by high demand, with 80% of landlords reporting strong interest in rental properties during the third quarter of 2024.
The outlook for the coming year is equally troubling. The survey found that 40% of landlords plan to sell some or all of their rental properties in the next 12 months, while only 6% intend to expand their portfolios. This exodus is attributed to rising mortgage rates, increased stamp duty on buy-to-let purchases, and a lack of supportive government policies for landlords.
Tenants face worsening rental market conditions
For tenants, the reduction in rental properties spells serious challenges. The NRLA warns that as landlords exit the market, competition for available homes will intensify, driving up rents and leaving many tenants struggling to secure housing.
Ben Beadle expressed frustration with current government policies, stating: “Tenants the length and breadth of the country know that there are not enough homes to rent. Rather than seeking to tackle it, the Government is instead doubling down on policies that have caused the chasm between supply and demand to widen in the first place.”
He added: “Whilst landlords selling up might benefit a minority of tenants in a position to afford a home of their own, the vast majority will face a growing struggle to access rental homes.”
Calls for a policy overhaul to address supply shortages
The NRLA is urging the government to reassess its approach to the rental market, arguing that existing policies are exacerbating the housing crisis. Beadle called for reforms that encourage landlords to remain in the sector and invest in decent quality homes: “It’s time for a change of course. We need policies to support the provision of more decent quality homes for private rent alongside all other tenures.”
The study underscores the financial pressures landlords face, particularly from rising interest rates that are cutting into profitability. Higher stamp duty rates, imposed on buy-to-let investors, have also dissuaded many from entering or remaining in the market.
