Around 42% of landlords have stated their intentions to shrink their rental property portfolios over the next 12 months, revealed the latest NRLA Landlord Confidence Index for Q3 2023.
In contrast, only 10% of property investors stated they will buy new rental units — a record low compared to previous index figures.
A relatively stark difference between the proportion of landlords planning to buy and sell property was also noticed over the past 12 months, during which just 8% of landlords bought new BTL dwellings, while more than twice as many landlords (20%) sold properties.
The reasons given by landlords for altering the size of their portfolios include tax changes (particularly the Section 24 update), interest and inflation rates, and landlord costs.
These factors have also driven landlords to drive up rental prices for their properties over the past 12 months — 68% of landlords have increased rents during this time period.
Despite this, landlord confidence rose from its all time low of 31.3 to 39.2 in Q3 2023, one of the largest quarter-by-quarter increases in confidence the index has recorded.
According to the NRLA, this is a result of several factors, including the relative macro-economic, the Bank of England rate stabilising, inflation rates falling, and the latest government announcements — particularly the withdrawal of the previously proposed minimum EPC targets, and the government assurances on court reform and Section 21.
