"The buy-to-let market is facing a number of challenges at present, with rising mortgage rates the biggest concern for landlords. "
- Rob Owens, head of research at e.survy
Of those surveyed (500), 44% of London-based surveyors said there had been an uptick in the number of homes let above the initial asking rent. Likewise, although surveyors saw a steady pipeline of homes for sale this month, homes were typically taking longer to sell and asking prices were squeezed at the top of the market.
50% of surveyors saw an increase in the number of privately rented homes entering the sales market, confirming that pressure on landlords continues to mount. For rented homes put up for sale, 90% of surveyors observed that they were sold to buyers who intended to make the property their primary residence.
Property Watch has said that these statistics show the stresses in the buy-to-let market and their impact on tenants and landlords alike. It also noted that these stresses continue, despite the government’s recent announcement to scrap plans for new minimum energy standards.
Consequently, 79% of surveyors saw a decline in landlords planning to buy new investment properties, while half of surveyors saw a rise in landlords planning to rationalise their portfolio or exit entirely over the last 12 months.
The demand for rental homes continues to outstrip supply across the UK, with 44% of respondents reporting a fall in the stock of rental instruction coming to the market.
Commenting on these findings, Rob Owens, head of research at e.surv, has said:
"The buy-to-let market is facing a number of challenges at present, with rising mortgage rates the biggest concern for landlords. This is leading to a decline in landlords participating in the sales market and an increase in landlords looking to rationalise their portfolios or exit entirely.
"These challenges could have a significant impact on the UK housing market, reducing the supply of rental properties and pushing up rents for tenants. It is important that the government takes steps to support the buy-to-let market and ensure that it remains a viable investment option for landlords.”
