Half of all UK landlords look to exit PRS
Nearly half of all buy to let landlords in the UK are looking at selling up and leaving the private rental sector, research reveals.
The findings from Aldermore Bank reveal that 48% of the 1,000 landlords they questioned are now actively looking at moving out of the sector.
This would then lead to a dramatic reduction in the supply of private homes for rent.
The reasons for leaving, landlords say, include the loss of tax-free allowances, stamp duty changes and tax increases.
Also, for 50% of landlords, they say that life as a landlord is now more difficult than it was five years ago.
The impact of new rules and regulations is also an issue with 68% of landlords saying that the changes have been too broad, while more should be done on clamping down on rogue landlords.
Issues affecting landlords
Other issues affecting landlords include high maintenance costs and regulatory tax changes.
Despite this, 52% of landlords say they would recommend being a landlord since it delivers investment opportunities.
The survey also reveals that 49% of landlords will not be looking to expand their portfolio of investment properties.
The managing director of the bank, Damian Thompson, said: "Landlords leaving the market will lead to less choice and impact negatively on rental property quality for tenants.
"More complex processes and increasing costs may have impacted landlords over the last five years but the rental sector continues to be a long-term, strong investment."
He added that landlords will still be needing advice and support on how to manage portfolios so the private rental sector can still support tenants with quality properties.
Rents are predicted to rise for the next five years
Meanwhile, the Royal Institution of Chartered Surveyors (RICS) says that rents look set to rise for the next five years across the UK.
In their recent market survey, RICS says that property demand has risen in recent months but there are still record low numbers of homes becoming available for rent.
They say that rents could increase this year by 2% potentially, and by 2025 they could rise by up to 3% every year.
The chief economist at RICS, Simon Rubinsohn, said: "This is the first time that new supply to the market has increased over three months since 2014.
"Inventory levels are at historically low levels and expectations are consistent with activity levels."