A high profile lettings agent insists that buy to let remains “a safe space for investors” seeking long-term returns, despite the challenges of recent years.
Nicky Stevenson, managing director of Fine & Country, says that July saw the number of prospective new tenants surge 38 per cent above the comparable figure for 2022 while property availability grew 24 per cent - widening an existing supply/demand gap.
“Consequently, more than three-quarters of agents, as reported in the Dataloft Inform Poll of Subscribers, have noted an increase in renters seeking lease renewals, with just five per cent reporting a decrease” she says.
The gap is exacerbated by the number of landlords who have quit the sector - some 400,000 since 2016, mostly thanks to higher interest rates and greater regulation.
Stevenson adds: “According to CBRE data, since 2016, approximately 400,000 rental homes have been sold by landlords, with 126,500 of these sales occurring since the beginning of 2022. The reasons behind this shift include policy changes, increasing taxation, rising inflation, and mounting mortgage costs, all of which have reduced the financial viability of buy to let properties. Many landlords are looking to exit the market.”
But she insists: “Softening sales prices and a downward trend in mortgage rates, coupled with steadily rising rents, continue to provide attractive returns and capital growth prospects for investors.
“Money.co.uk reports that an estimated 41 per cent of landlords own all of their properties outright, while 35 per cent hold all their properties on a mortgage. Those without a mortgage or with lower loan-to-values are in a particularly strong position to capitalise on the current market dynamics.
“While landlords have faced challenges in recent years, the potential for medium-to-long-term investment remains robust.”
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Agents and landlords have completely different perspectives on property rental.
Landlords, in general, are deeply concerned about the Renters Reform legislation because it affects our ownership rights. Agents have far less concern about that legislation because they don't own the properties.
An agent would say that 💵💵 we know it’s not true.
“Agent insists buy to let remains ‘safe space for investors”
I only read the above. Didn’t bother for the article due to the comments ⬆️
Less Landlords mean less properties for agents to let and manage. The lettings industry will go through a period of rationalisation with smaller operators taken over by the larger ones. Management fees will increase and will be passed onto tenants in the form of higher rents. Another own goal by the Consocialist Party.
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