The number of landlords selling up following the stamp duty rise in April has risen by a third, new data shows.
According to the Association of Residential Letting Agents, letting agents reported that an average of four landlords were selling their buy-to-let properties per branch in April, an increase from three in March. This is the first rise since April 2015.
The number of rental properties managed per branch increased by 8% April to the highest level this year, but supply still stands at 5% lower than in April last year.
The average number of properties managed per branch has fallen from 193 in April 2015 to 183 this year.
Demand is also falling, with 34 prospective tenants per branch – down from 36 in April of last year.
Two-thirds of ARLA agents (66%) predict the stamp duty reforms will push rent costs up for tenants in the future.
David Cox, managing director of ARLA, said: “It’s likely that this increase in supply is only temporary. At the end of April we saw a flurry of landlords seizing the last few moments before the stamp duty rise to complete sales, triggering an increase in the supply of empty rental homes to be filled this month.
“However, we expect that fewer investors will be taking on buy-to-let properties over the next six months, following the price hikes, meaning that once these properties are filled we’ll see supply nose-dive once again.”
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