Some 22% of landlords sold property last year against just 6% who bought, signalling that more investors are exiting the market, the Landlord Trends report from Pegasus Insight has revealed.
More highly leveraged landlords with four or more buy-to-let mortgages were the most active, with 11% buying a property in the last 12 months and around three times this number selling (31%).
Over a third (37%) of landlords also plan to sell in the next year, against just 6% who plan to buy.
Mark Long, founder and director of Pegasus Insight, said: “These results suggest a large cohort of disillusioned landlords, worried about the future of the sector and further demands the government might place on them.
“Our research confirms that many landlords are deeply concerned about the impact of the Renters’ Rights Bill, energy efficiency requirements and a potential hike in Capital Gains Tax on buy-to-let property.
“The fact that so many feel impelled to sell up despite the underlying health of this market is particularly galling.
“A proportion of the intended sales will be down to selective pruning by larger landlords, and some of the divested property will be hoovered up by other landlords.
“But there’s no doubt that the volume of stock in the PRS will reduce in the next 12 months. And as supply falls while demand remains strong, rents will inevitably rise yet further, hurting tenants.
“The government must wake up to the dangers of a shrinking PRS and change its approach to the landlords who provide homes for 19% of the UK’s population.
“Now is the time for policymakers to consult with the industry on ways to support landlords and encourage further investment in the PRS, before it is too late.”
Just 28% of properties sold by landlords definitely stayed in the Private Rental Sector (PRS).
While most investors buying a new property bought from another landlord (58%), those selling predominantly sold to owner occupiers (67%), especially first-time buyers (31%).
