Belvoir has published quarterly data that shows landlords increasingly selling stock, a trend which the lettings agency says needs to be tackled in the autumn budget.
The research is carried out across 140 Belvoir franchise offices from 2008 to 2018.
It says that the amount of Belvoir offices that reported landlords selling up to three properties in Q2 2018 went up from 46.3 per cent to 48.1 per cent; four to five properties decreased from 31.5 per cent to 26.9 per cent, six to ten properties from 7.4 per cent to 17.3 per cent, and that the number of offices reporting landlords selling 11 or more properties fell slightly from 5.6 per cent to 3.9 per cent.
The research states that the main reasons for selling properties are “tax changes and constant regulation and legislation changes.”
Belvoir chief executive Dorian Gonsalves says: “More landlords are selling up, and fewer are investing in the private rental sector, due to increased legislation and punitive taxation policies. Belvoir is calling for the government to take urgent remedial action in the autumn budget to incentivise those landlords who are providing much-needed good quality accommodation for the UK’s growing tenant population.
“Although government policies such as a loss of mortgage tax relief, and increased stamp duty on second homes is hurting landlords, they still have a choice as to how to invest their money, whereas tenants have little or no choice of where to rent due to a reduction in supply.
“If landlords continue to sell up because their business model in the private renter sector is being continually attacked, it will undoubtedly result in a further shortage of properties, and inevitable increases in rents, as predicted in the latest RICS report, which stated that rents are likely to rise by 15% over the next five years,” he adds.
Across England, Scotland, and Wales the research reports that the average rent in Q2 2018 stood at £782, a 0.75 per cent increase year-on-year.