Withdrawal of buy-to-let landlords from property market bad news for tenants
There are a number of indicators pointing to a decline in the number of landlords in the property market. Not least of these is the newly released TwentyCi National Homemover Audit that shows that there has been a 25% drop in property exchanges for buy-to-let properties. Although this decline in rental property acquisitions may be encouraging for prospective first-time buyers, this trend could soon lead to an increase in rents, according to a leading property market analyst.
Kate Faulkner, founder of Property Checklists.co.uk and consultancy Designs on Property Ltd, said, “Although it may appear ‘good news’ initially that there are fewer buy-to-let investors, this is likely to back fire on tenants as where there is a shortage of rental properties, rents may rise. However, it’s also likely to hit the economy which is already slowing.
“A landlord spends thousands checking a property and letting it, supporting all manner of trades and letting experts.
“A loss of money in this sector will surely impact on earnings, and therefore on economic growth.”
Full story available from LandlordTODAY: https://www.landlordtoday.co.uk/breaking-news/2017/7/sharp-decline-in-buy-to-let-landlords-likely-to-back-fire-on-tenants