Fewer landlords planning to sell up
Fewer landlords are planning to sell their properties than a year ago, Paragon Mortgages’ latest Private Rented Sector trends report has found.
At the start of 2016 a quarter of landlords expected to sell, the highest ever level, but that figure has now fallen to 17% as the tax relief changes edge closer.
The proportion of landlords willing to purchase buy-to-let property in the first quarter of 2017 has also risen by 4% to 14%.
Among landlords expecting to purchase, the proportion most likely to buy flats or maisonettes has decreased by more than half to 31%.
The majority of landlords interviewed in the report (94%) described tenant demand as stable or growing.
John Heron (pictured), managing director at Paragon Mortgages, said: “With no material improvement in the supply of new housing against a background of strong population growth and household formation, it is no surprise that landlords are continuing to experience strong rental demand.”
He added: “Any boost given to improving supply to the sector needs to be balanced against the additional upward pressure that we are likely to see in rents as a result of the phased impact of the changes to the taxation of rental income.”