Tightened regulatory framework on small UK landlords leads to unexpected consequences on the property market, allowing new investors to enter this sector. The Royal Institution for Chartered Surveyors (RICS) warned that the demand for private rented homes is outstripping supply and Rightmove observed strong demand from tenants.
At the same time, the Residential Landlords Association (RLA) discovered in a survey that 45% of landlords assumed the Stamp Duty Levy on additional properties a deterrent to further investment in buy-to-let.
New regulation changed intentions of market players. Just 12% of existing landlords are looking to expand the number of homes they rent out down from 14% a year ago. More than one third of landlords have indicated they intend to reduce their investment in the market. It comprises a 30% increase over the previous twelve months, according to the research conducted by the RLA. About 30% of private landlords are planning to cut the number of homes they rent out or exit the market altogether. The representative survey included more than 2000 landlords. The report “State of the Private Rented Sector” is available from the RLA website.
Among other things, this market situation change means higher availability of buy-to-let investment opportunities for the first-time investors. Combination of high demand from tenants and limited opportunities for established landlords, who are willing to drop their previous properties back to market, creates a pool of homes readily available for buy-to-let across the United Kingdom.
ORACLE CAPITAL GROUP is an investment and real estate development consultancy. We specialise in residential and commercial property projects. We help to aspiring first-time property investor in the UK with professional advice and financial options.