Elimination of amateur landlords

Recent analysis suggests that if certain legislative changes are successful in the elimination of amateur landlords, the stock levels in the private rented sector could potentially decrease by a staggering 383,600 homes[1]. It is reported that 14% of buy-to-let landlords in the UK have only one property, classifying them as ‘amateur’ landlords.

Such a reduction in housing would inevitably cause major implications towards the private rented sector, amounting to a market value decrease of £223.5bn when taking into account current average prices of buy-to- let landlords’ properties (£285,915).

SIGNIFICANT DECLINE

The private rented sector accounts for almost 19% of all dwellings in the UK, which translates to approximately 5.6 million homes owned by 2.74 million landlords who own an average of just over two properties each. However, the analysis predicts that these numbers could see a significant decline due to recent government legislation aimed at deterring buy-tolet landlords’ investment and reducing landlord profit margins.

“ The private rented sector accounts for almost 19% of all dwellings in the UK%.”

PROPERTY SHORTAGES

While the legislative changes may help address property shortages within the sales market, it is not a practical or reasonable solution compared to building more homes. Moreover, tenants ultimately end up paying the price for any shortage in properties since this drives up rental costs even higher.

Experts predict, if amateur landlords were to cease entirely, it would further reduce private rented sector stock levels and exacerbate an already challenging problem.

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