New research from Pegasus Insights has revealed the chronic rental property shortage is being intensified by landlords planning to sell their properties instead of buying.
According to the data, which was commissioned by The National Residential Landlords Association (NRLA), almost eight-in-ten landlords (79%) reported that the demand for private rented housing was strong in Q3 2024.
The research indicates that landlords who let property in the South East experienced the highest levels of demand, with 84% saying it was strong in the third quarter.
Despite this, 19% of landlords across England and Wales sold properties in the past year, more than double the 8% who bought.
Over the next 12 months, a staggering 41% of landlords said they plan to sell at least some rental properties, compared to just 6% saying they would buy.
The NRLA warned that, for the vast majority of tenants, landlords selling properties spelled bad news, exacerbated by financial pressures on landlords from higher mortgages rates and the stamp duty changes.
Ben Beadle, chief executive at the NRLA, said: “Rather than seeking to tackle [the rental property shortage], the government is instead doubling down on policies that have caused the chasm between supply and demand to widen in the first place.
“While landlords selling up might benefit a minority of tenants in a position to afford a home of their own, the vast majority will face a growing struggle to access rental homes.
“It’s time for a change of course; we need policies to support the provision of more decent quality homes for private rent alongside all other tenures.”
