A prominent business analyst says the great rental sell-off leaves remaining landlords in a powerful position.

Sarah Coles, head of personal finance at consultancy Hargreaves Lansdown, says that “for those trapped in the rental market, there’s no let-up in the relentless squeeze.”

She says latest figures from the Royal Institution of Chartered Surveyors shows yet another month of growing demand and dearth of properties to rent, which is pushing rents higher.

“Agents say landlords are leaving in droves – not just because of increasing tax and legislation, but because rising mortgage rates and the cost of maintaining the properties just doesn’t add up for an awful lot of them now. 

“Even for those with enough cash to cover their rent, the shortage of properties mean landlords can afford to be incredibly choosy. 

“It means anyone living on a fluctuating income, renting while they study, or carrying a less-than-perfect record for rental payments can be fighting a losing battle to find a home.”

On the sales side, based on the latest RICS figures, Coles says any renter considering buying with the new much-hyped Skipton Building Society must factor in possible risks.

She comments: “Demand has now fallen every month for the past year, and with sales dwindling and house prices dropping, it’s proving more difficult to shift properties. 

“It’s taking almost 20 weeks from first listing to final completion, as cautious buyers guard against hasty decisions.

“These figures are far more negative than those from Zoopla which noted a bounce around Easter as sales picked up. RICS hasn’t seen the same rises, and estate agents remain pretty miserable about the prospects for the immediate future too.”

She believes that while most of the respected indices still show house prices hanging onto gains over the past year, the monthly figures are less cheering. 

“There’s still every chance prices could continue to fall from here. It means anyone considering getting a mortgage with a small deposit – or even a 100 per cent mortgage – needs to think very carefully about how they would cope if prices fell and pushed them into negative equity.”