Apparently, according to the National Landlords Association (NLA), a significant number of landlords are concerned about the future of the buy-to-let sector in which they operate. The confidence of many landlords is extremely low.
In fact, so serious is the situation that matters are worse than how landlords were feeling when the last financial crisis took place a number of years ago. So much so that many are intending to sell their investment properties over the next year.
The CEO of the above association informed those attending a meeting of the Building Societies Association (BSA) that based upon information contained in the most recent NLA Quarterly Panel survey in which a number of landlords participated that as many as half a million buy to let properties could be sold by landlords in the next 12 months. Furthermore, after that period, as many as 100,000 such properties could be sold off every year until 2021. So, in 5 years time there could be as many as 136,000 less buy to let properties available presumably when you take into account the likes of new landlords entering the lettings market and buying such properties for the first time.
The announcements relevant to landlords made by the Chancellor in last year’s Summer Budget and Autumn Statement have apparently not helped matters. In fact, the NLA had previously been predicting that in the next 5 years there would be an extra one million private rented sector homes available for people to rent. This latest prediction at the above meeting is a complete and concerning reversal.
We need to have as many rental properties as possible available for single people, couples and families to be able to rent. It will be interesting to see if the CEO’s comments have any impact. For instance, could the Chancellor have a re-think about what was announced last year in the Summer Budget and Autumn Statement that affected landlords? We can but wait and see.