Warning that reduction in buy-to-let landlords will impact tenants
- Published: Thursday 27 July, 2017
- Category: Housing market
- By: Andrew Pelis
- Updated: Friday 04 August, 2017
A stark warning has been issued that the fall in buy-to-let landlords could result in rent increases for tenants.
A new report from TwentyCi National Homemover Audit reveals a 25% drop in property exchanges for properties purchased for buy-to-let.
The fall in transactions comes in an environment where higher stamp duty has been imposed on landlords, whilst the gradual reduction of mortgage interest relief and stricter lending criteria have all had an impact on moods, whilst putting an onus on banks and building societies to require larger rental cover and higher deposits on mortgages.
The reduction in buy-to-let purchases has also created a reduction in the number of available homes within the private rental sector, exacerbating the current supply-demand imbalance and potentially putting further pressure on existing rental values.
A shortfall in available rental properties could result in further rent increases.
Regardless of all the legislative changes, our chief executive Andrew Turner gives a firm note of reassurance to landlords in his comments earlier in the month, for details see our news story “Buy-to-let will always be a strong investment”.
Some politicians also seem to be coming round to the realisation that the private rental sector is a vital contributor to the country’s housing stock. Former Conservative party leader and Secretary of State for Work and Pensions, Iain Duncan Smith gave voice to his views on the matter.
This information should not be interpreted as financial advice. Mortgage and loan rates are subject to change.