Landlords are continuing to exit the property market

Landlords are continuing to exit the property market

Landlords are continuing to exit the property market, Belvoir said.

The company said that in the third quarter of this year, its offices showed an increase from 48% to 52% of landlords selling up to three properties, and a similar number selling between four to five properties, compared with the second quarter.

There was a decrease, from 17% to 12%, in landlords selling six to ten properties.

Belvoir CEO Dorian Gonsalves said that two years ago, 10% to 18% of its offices were reporting no sales of landlord properties. This figure is now 4% to 5%.

He said: “The main reasons for landlords exiting the market are tax changes, constant regulation and increasing legislation, landlords moving back in to their properties, and lower investment returns, as well as uncertainty over Brexit and what this will mean for the market.

“When selling properties, only 19% of offices reported properties being sold to first-time buyers as the Government hoped, however.

“According to our survey, 33% of offices reported properties are being sold to other landlords and 23% are general sales.

“This suggests the Government’s plan to increase home ownership by reducing the attractiveness of buy-to-let isn’t necessarily working.

“We are still seeing landlords buying, but the numbers of properties are reduced, particularly those landlords buying six or more properties.”

Although Belvoir is forecasting rising rents next year, it said that in the third quarter of this year, rents fell 1.25% compared with the same time a year ago, to average £730.