A majority (78%) of landlords in England have no confidence in the lettings sector following the introduction of the Renters Rights Act.
A new survey from flatshare website SpareRoom reveals that fewer than 4% of landlords are expanding their portfolios.
Meanwhile 36% are reducing their portfolios and 27% are leaving the rental market altogether.
More than half (53%) of landlords with five or more buy-to-let properties are in the act of reducing their portfolios; small landlords are most likely to be exiting the rental market.
Website director Matt Hutchinson comments: “for all the good it has done tenants so far – and the end of no-fault evictions and bidding wars has been positive – the Renters Rights Act has also battered supply and forced up asking rents.
“It’s unlikely this will be resolved any time soon because landlords are still reacting to the changed landscape.
“Some have told us that while they’re not selling up right now, they don’t plan to re-let when their current tenants leave.
“While landlords have the option to walk away and invest their money elsewhere, tenants don’t. They’re now facing the fallout of a private rented sector that’s deterring those who provide homes.”
