Decline in Landlords will hit tenants in rent rises
Posted on 02/08/2017 by Sulgrave Estates
A newly released National Homemover Audit shows buy-to-let landlords are currently in retreat leaving many first time buyers better able to acquire a property. However, they warn that this trend could soon lead to an increase in rents according to a leading property market analyst.
The decline is most likely due to the Government’s phasing out of mortgage interest relief in addition to the higher stamp duty and tighter mortgage lending rules. The drop in buy-to-let purchases has naturally led to a fall in the number of homes coming onto the private rented sector adding to the growing supply-demand imbalance in the market. This is also likely to place upward pressure on rental values.
Kate Faulkner of PropertyChecklists.co.uk says “It’s interesting to see the impact of the Government tax hikes on the landlord market. Although it may appear “good news” initially that there are fewer buy-to-let investors around, this is likely to backfire on tenants as where there is a shortage of rental properties, rents may rise. 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.”