Buy-to-let properties are being sold five times faster than investor purchases, a new study from Savills reveals.
In a study looking at the current state of the PRS, Savills found a major exodus of rental homes at a time when demand is very high and rents are still rising.
The findings confirm warnings from many in the PRS sector that government policy is deterring landlords from making new investments.
Another hit
The Renters’ Rights Bill, which is currently passing through Parliament, is being viewed as another hit for landlords.
A ban on Section 21 ‘no fault’ evictions is one of the main measures being seen as a blow, and the latest amendment which removes a requirement for tenants to have pet insurance doesn’t help.
“Using listings data from a property portal in combination with HM Land Registry sales data, we identified that in 2024, 5.4 homes were sold from landlords to owner occupiers for every one home bought by landlords from owner occupiers, a 5:1 ratio.
“This is a much faster rate than in 2021, where the ratio was around 1:1,” Savills says.
Available evidence strongly suggests that small individual landlords in the PRS are selling their rental properties.”
“Available evidence strongly suggests that small individual landlords in the PRS are selling their rental properties.”
The report goes on to say that between April 2021 to October 2024, 290,000 rental properties, or 6% of the PRS in England and Wales, were sold.
And with the average age of landlords now around 59, some are looking to sell up as they approach retirement.
Not enough
Savills also says the number of rental listings per suburban letting branch in April remained 31% lower than the 2018–19 average.
“The delivery of BtR (Build to Rent) is one way to improve rental supply locally….While this has gone some way to replacing lost supply, it hasn’t been enough,” Savills warns.
Read the full report here
