A number of buy-to-let landlords are currently thinking about exiting the private rented sector due to recent policy changes, including the existing phasing out of mortgage tax relief, but many potential sellers should think again, according to a leading PropTech platform.
With the latest data from Rightmove revealing that the average time to sell a property across Britain as a whole has increased from 72 days a year ago to 77 days now, RentalStep is advising landlords looking to sell up to make the most of their rental properties while the sales ‘market is tricky’.
Although there are significant regional variations, the general trend at the moment is for properties to take a longer time to sell than a year ago.
“The data suggests that it’s currently more difficult, and is taking people longer to sell a home,” said Mike Georgeson, founder and chief executive of RentalStep. “As a result, those landlords considering selling their properties to make money or cut costs might want to think again when market conditions are difficult.”
Georgeson is not surprised at the sluggish trend in the property market, given the current economic and political uncertainty and affordability issues, and believes that many purchasers will remain reluctant to commit to buying until after the ramifications of Brexit become clearer.
He added: “The ongoing question marks over Brexit are weighing down the sales market. However, it’s affecting rentals less because the private rented sector is a far more urgent market.
“In other words, tenants still need to find or move homes – often at very short notice for work or family reasons – and are less likely to have the option to delay a move like buyers and sellers. This urgency is helping to keep rental demand high.”