While there are many factors that impact on the UK property market, a lack of suitable homes is often cited as the most influential factor in the price of homes. Never mind Brexit or interest rates or mortgage acceptance levels, a lack of suitable housing and the fact that demand outstrips supply is the over-riding factor that has shaped the UK property market in recent years. Reports suggesting that many letting agents are expected to exit the market, flooding the housing market with property, is therefore of interest to everyone with an interest in the property market.
A study carried out by the National Landlords Association, the NLA, suggested that one fifth of landlords operating in the United Kingdom expressed an interest in selling their property. Of the respondents who said they were looking to sell, 45% said they would be selling an apartment or flat. In total, these figures suggest that 380,000 landlords operating in the buy-to-let market are looking to sell their property in the next 12 months.
First-time buyers may have more opportunities to buy property
The fact that there is likely to be a considerable number of flats and apartments being placed on to the market has led the NLA to suggest this could be positive news for first-time buyers. These buyers are often looking for more modest accommodation as they step on to the property ladder, and an influx of homes that meet this demand will be of benefit to many people.
Of course, an influx of new homes onto the market will be of benefit for first-time buyers, it will be difficult news for tenants to hear. There are concerns about a lack of suitable rental accommodation these days, a factor which has helped push the cost of rental fees upwards. If many landlords decide to get out of the sector, tenants will find themselves displaced and with fewer rental options, demand outstripping supply could lead to even higher rental fee increases.
Landlords are not looking to sell property to other landlords
The findings also suggest that just 7% of landlords are likely to sell to other landlords, which means that many of these properties will be moved out of the rental market and into the general housing market.
The Chief Executive of the NLA, Richard Lambert released a statement, saying; “These findings sound like positive news for potential new homeowners, but the reality is not everyone wants, or is in a position financially, to buy. In fact, if all these homes are sold as planned then it will lead to a significant fall in the supply of property available to those who choose to rent or have no other option but to rent.” As is often the case in the property market, there are two sides to every story or issue, and it is likely that many people will need additional support if this prediction comes to pass.
If a considerable number of landlords decide to exit the market, there could be an enormous impact on the UK property market. If you want to remain up to date with changes or you are keen to learn how these changes impact on the Hillingdon property market, get in touch with Link Up. We are local estate agents and we are here to help you make informed decisions when you make a property move.