The number of London landlords selling their properties and exiting the buy-to-let market hit six per branch during December last year, latest research by the Association of Residential Letting Agents (ARLA) has revealed.
Its December Private Rented Sector report says the average across England remained at four landlords quitting per branch and that the supply of rented properties is down 4% year-on-year.
Fewer landlords are quitting the market outside London. ARLA says on average three landlords sold their homes per branch in the North East, East Midlands, West Midlands, East of England and the South West.
“Over the last few years, landlords across the country have been pushed out of the market by increasing costs and legislation, and new investors have been deterred from entering,” says David Cox (left), Chief Executive, ARLA Propertymark.
“The issue has particularly intensified in the capital which may be the result of landlords starting to receive their first tax bill incorporating the increase in taxes from the Mortgage Interest Relief changes which came into force last tax year.”
ARLA predicts a difficult year ahead for the capital’s private rented sector following Mayor of London Sadiq Khan announcement that he wants to introduce rent controls.
“Tenants will face more competition for properties, which will push up rents on good-quality, well-managed properties, and leave the vulnerable and low-income people which rent controls are designed to help in the hands of rogue and criminal operators,” says Cox.
Housing Minister Heather Wheeler (right) has revealed that the government is about to announce its latest proposals on the PRS.
Following the recent consultation, Wheeler said in response to a question yesterday in parliament from Shadow Minister for housing Kate Hollern: “We will be bringing forward proposals that make the system work for both tenants and landlords and provide more information shortly”.