According to Aldermore‘s research, 34% of landlords thinking of selling their properties pointed to high maintenance costs and increased regulation of the sector, such as the Renters’ Rights Bill.
Stamp duty changes on buy-to-let (BTL) properties have also led to around 29% of landlords surveyed considering selling their properties.
The report found that 29% of landlords have already sold some of their properties in the last year, selling around 32% of their portfolio on average.
Around half of landlords said they are seeing a rise in tenant demand, with Aldermore noting that as more landlords leave the market, rental homes could become scarcer, therefore driving up rents.
Around 61% of renters are fearful that future rent increases mean they will have to change their living arrangements, such as moving back in with family or renting with more people.
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Approximately 69% of landlords said private landlords leaving the sector would hurt the quality of properties.
Nearly three-quarters of renters who have recently moved said they feel like they are competing with more people.
Just over a quarter have had to move as their landlord had sold their property.
Despite “widespread negativity” regarding landlords, Aldermore said, two-thirds of tenants describe their experience with landlords as positive.
Over a quarter who are considering leaving the market say they are “fatigued by the rhetoric” around landlords being scapegoated for the problems in the housing sector.
Jon Cooper (pictured), director of mortgages at Aldermore, said: “Year-on-year, we’re seeing the private rental sector become a more challenging environment, for both landlords and renters. Increased regulation, high mortgage rates and high maintenance costs mean more landlords are unfortunately being squeezed out of the market. This in turn is impacting renters, who are dealing with increased competition for properties in addition to higher rents.
“Our data shows year after year that most landlords have positive relationships with their tenants. Looking ahead, we must ensure that the private rental sector remains a viable environment for landlords to operate in, as a continued exodus will place greater strain on an already stretched sector, further impacting tenants.
“Aldermore welcomes the government’s efforts to increase transparency within the sector and recognise the role that good landlords play through the Renters’ Rights Bill, but this must be done in a way that is proportionate and does not create undue additional strain on landlords.”
