Landlords invest in 85,000 fewer properties
The latest analysis from Dwelly, one of the UK’s leading lettings acquisition and success planning experts, has revealed that landlord purchasing activity has slowed considerably, with an estimated 170,520 landlords buying a property in the last 12 months compared to 255,780 a year earlier – a drop of 85,000 transactions.
Dwelly analysed the latest figures from The Mortgage Works on the percentage of landlords to have purchased a home in the last 12 months, before applying this to HMRC data on landlord numbers to reveal how many landlords are estimated to have expanded their portfolio.
The analysis shows that just 6% of the UK’s estimated 2.84 million landlords have purchased a property in the past year, down from 9% in Q1 2024.
This equates to 170,520 buy-to-let properties purchased over the last 12 months versus 255,780 the previous year, a reduction of 85,260 properties.
The regional picture shows that the North East remains the most active market, with 17% of the region’s estimated 67,000 landlords buying a property in the last year, down from 22% a year earlier.
Regionally, the East of England recorded the highest number of landlord purchases over the past year, with 23,360 transactions.
The East Midlands followed with 21,720 purchases, while the South East ranked third at 18,760. The South West saw 18,300 acquisitions, closely followed by the North West with 18,080.
The West Midlands recorded 16,160 purchases, London 14,010, the North East 11,390, and Yorkshire and the Humber 10,860. Wales saw the lowest figure, with just 2,180 purchases.
Dwelly says the figures suggest that concerns around the incoming Renters’ Rights Bill are weighing heavily on landlord intentions to grow their portfolios. With potential changes to tenancy rules, eviction processes and compliance requirements on the horizon, many are waiting to see the final form of the legislation before committing further capital. However, the firm believes that once the bill has passed and the dust has settled, many landlords will remain in the sector and resume investment activity, particularly in areas with strong rental yields and high tenant demand.
Sam Humphreys, Head of M&A at Dwelly, commented:
“An 85,000 drop in annual landlord purchases is a clear signal that confidence has been dented by regulatory uncertainty, higher borrowing costs and slower house price growth. But this is not a mass withdrawal from the market, landlords are simply taking stock and who can blame them with the Renters’ Rights Bill set to bring substantial changes to the sector.
Despite this uncertainty, the fundamentals of the rental sector remain strong, and once the Renters’ Rights Bill is finalised we expect many will return to buying, particularly in those regions where rental properties continue to bring strong returns on investment.”
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