Some 170,520 landlords purchased a property within the final 12 months in comparison with 255,780 a yr earlier – demonstrating that the market has drastically slowed in that point.
Simply 6% of the UK’s estimated 2.84 million landlords have bought a property previously yr, down from 9% in Q1 2024.
On 31 October 2024 the stamp obligation surcharge on funding properties was elevated from 3% to five%, which is more likely to have delay new buyers from shopping for property.
The evaluation comes from lettings acquisitions agency Dwelly based mostly on figures from lender The Mortgage Works.
Sam Humphreys, head of M&A at Dwelly, stated: “An 85,000 drop in annual landlord purchases is a transparent sign that confidence has been dented by regulatory uncertainty, larger borrowing prices and slower home value development.
“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 carry substantial adjustments to the sector.
“Regardless of this uncertainty, the basics of the rental sector stay robust, 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 carry robust returns on funding.”
The North East is essentially the most lively market, with 17% of the area’s estimated 67,000 landlords shopping for a property within the final yr, down from 22% a yr earlier.
Nonetheless, the East of England recorded the best variety of landlord purchases over the previous yr, with 23,360 transactions.
The East Midlands adopted with 21,720 purchases, whereas the South East was third at 18,760.
Wales is the slowest landlord market, with simply 2,180 purchases.
