As many as 10% of landlords are choosing to exit the rental sector every year, according to new research by housing charity Shelter.
Using data from YouGov, Shelter have claimed there is significant ‘churn’ in the private rental sector as landlords are pushed out by changes in their personal circumstances and changing financial situation.
According to helter spokesman John Bibby, their survey of 4,500 people found that 7% of the adult UK population had been a landlord at some point, but have since exited the sector, meaning there are around 3.5 million ex-landlords in Britain.
Approximately 29% of those stopped being landlords in the five years to March of this year, almost1 million people in total and an average of 200,000 per year.
While Shelter also claims that these landlords are being replaced by new property investors coming into the market, the figures come as concerns are being raised about the impact of recent Government reforms of the private rented sector which could make it unaffordable for many people to continue letting properties.
John Bibby said; “Of course, the fact that the total number of landlords has continued to increase, even while a large number of landlords have been leaving the market every year, means that even more people are starting to let out property every year.”
However, there has already been a fall recorded in the number of new buy to let acquisitions.
Haart estate agents published data in July suggesting the number of landlords purchasing new properties is down by 30% year on year, based on activity at their branches.
Meanwhile, market research company TwentyCi have published their own figures pointing to a fall of 25% in the number of new buy to let transactions.
Recent research carried out by Kent Reliance has also shown that landlord’s confidence in the future performance of their properties is falling.
According to Kent Reliance’s Buy to Let Britain Report, only 41% of landlords are confident about the financial prospects of their portfolios as a result of recent tax changes. This is likely to fuel concerns that increasing numbers of landlords may be considering exiting the PRS.
If you’re a landlord worried about your financial situation or considering leaving the rental market, contact Landlord Debt Advisory for a consultation on 0161 222 4311 or online at landlorddebtadvisory.com.