Since the start of the year we have had a record amount of landlords decide to test the open market and sell their properties. And this isn’t just a local phenomenon as Estate Agents across the whole of the UK are also registering a record amount of interest from vendors looking to sell, including Landlords.
But what does this mean for the Private Rented Sector here in Swansea? As more ‘Accidental Landlords’ are deciding to test the market, it is leaving an unprecedented hole in the availability of quality rental property. Over time this will only lead to higher rents as demand outstrips supply and tenants who can afford more will gazump other applications. Whist this may seem good news for landlords, the long term situation is pretty dire for tenants.
In the past week we have let 6 properties which all had applications from the first block of viewings, leaving 20 other viewings either canceled or viewers told the landlord has agreed a tenancy so they can not apply.
David Cox, ARLA managing director, said back in May: “It is interesting that we have seen an increase in the amount of landlords selling their buy-to-let properties in the last month, which is likely to have been a result of political uncertainty.
“We know that Labour’s plans within the PRS were unpopular for many landlords and agents, so this increase in those selling their buy-to-let properties may have been a knee-jerk reaction to the possibility of Labour’s proposals coming in.”
http://www.propertyindustryeye.com/rents-rise-as-more-landlords-sell-up/
And it’s not just the accidental Landlords who are testing the market, the UK’s ‘king of BTL’ is also famously bailing on the lettings market and has just sold his first 100 properties due to the changes in housing benefit payments. Fergus Wilson famously ‘evicted’ all of his housing benefit tenants last year even if they weren’t in arrears.
Here in Swansea, the feedback from our Landlords seems more in line with rising house prices, with the hope that their property is now worth more than a few years ago.
So perhaps now with so many Landlords selling, is now a good time to buy? With interest rates low and tenant demand still on the increase it has never bee a better time to buy. (see: Where is the best place to buy to let in Swansea)
What will this mean for the overall Lettings market in the next 12 months? I think it really depends how many more landlords sell and if new investors are keen to put their money into property .. I guess we will have to watch this space … !
