The survey conducted by BVA-BDRC and commissioned by the National Residential Landlords Association (NRLA) found that in Q2, 12 per cent of landlords in England and Wales disposed of properties while just five per cent made purchases.
Going forward, 37 per cent of the 983 respondents said they would reduce the number of properties they let in the coming year. The NRLA said this suggested that the number of landlords planning to downsize their portfolio was at an “all time high”.
Just eight per cent of landlords said they would be adding to their portfolio in the future.
Although landlords said they were planning to reduce the properties they let, 67 per cent said tenant demand had risen in Q2. This was also a record high for this metric.
The NRLA said ongoing uncertainty about changes in the private rental sector and rising mortgage costs was deterring landlords from investing. It called for tax changes to be scrapped to improve the number of available rental properties, such as the three per cent stamp duty levy on rented homes and the restriction of mortgage interest relief on long-term homes to rent.
Ben Beadle, chief executive of the National Residential Landlords Association, said: “Whilst the Chancellor has developed a mortgage charter to help homeowners, the lack of assistance for renters and their landlords is clear for all to see.
“Households renting privately are facing the full force of the supply crisis, and change is needed now to prevent the situation from worsening over the next 12 months.
“The government must reverse its damaging tax hikes on the sector. It is frankly absurd to have a tax system that punishes landlords for providing the homes tenants so desperately need whilst favouring holiday lets.”