Purchase-to-let landlord buying exercise has slowed considerably over the previous yr, with the variety of landlords buying properties dropping by roughly 85,000 transactions.
New evaluation of information from The Mortgage Works reveals that solely 6% of the UK’s estimated 2.84 million landlords bought a property within the final 12 months — a notable decline from 9% in Q1 2024. This interprets to 170,520 buy-to-let purchases previously yr, down from 255,780 the earlier yr.
Regionally, the North East stays essentially the most energetic marketplace for landlord purchases, though exercise has decreased from 22% to 17% of the area’s estimated 67,000 landlords shopping for properties over the past yr.
By way of quantity, the East of England led the nation with 23,360 landlord purchases, adopted by the East Midlands with 21,720, and the South East with 18,760 acquisitions. The South West and North West markets recorded 18,300 and 18,080 purchases respectively.
Different areas included the West Midlands with 16,160, London with 14,010, the North East at 11,390, and Yorkshire and the Humber with 10,860 purchases. Wales noticed the bottom degree of landlord shopping for, with simply 2,180 transactions recorded.
The information displays rising warning amongst landlords, seemingly influenced by ongoing market uncertainty and legislative adjustments such because the Renters’ Rights Invoice.
Dwelly, which carried out the analysis, says the figures recommend that considerations across the incoming Renters’ Rights Invoice are weighing closely on landlord intentions to develop their portfolios.
With potential adjustments to tenancy guidelines, eviction processes and compliance necessities on the horizon, many are ready to see the ultimate type of the laws earlier than committing additional capital. Nonetheless, the agency believes that when the invoice has handed and the mud has settled, many landlords will stay within the sector and resume funding exercise, notably in areas with sturdy rental yields and excessive tenant demand.
Sam Humphreys, head of M&A at Dwelly, commented: “An 85,000 drop in annual landlord purchases is a transparent sign that confidence has been dented by regulatory uncertainty, increased borrowing prices and slower home worth progress. However this isn’t a mass withdrawal from the market, landlords are merely taking inventory and who can blame them with the Renters’ Rights Invoice set to convey substantial adjustments to the sector.
“Regardless of this uncertainty, the basics of the rental sector stay sturdy, and as soon as the Renters’ Rights Invoice is finalised we anticipate many will return to purchasing, notably in these areas the place rental properties proceed to convey sturdy returns on funding.”
