The majority of buy-to-let properties sold are being replaced by owner occupiers, research from e.surv has revealed.
A survey of more than 500 major valuers and surveyors found that 90% of investment properties were sold to buyers who planned to make them their primary residence.
Four in five (79%) surveyors also saw a drop in landlords planning to buy new investment properties in the past 12 months.
Supply issues
It’s no surprise that supply has become such an issue, as more landlords have been selling off their stock due to a tougher regulatory environment.
One of the most impactful changes was the elimination in mortgage income tax relief, which was replaced by a 25% tax credit.
Some 44% of surveyors saw falling stock of rental properties in the past year, which is pushing up prices.
Indeed, 45% of London-based surveyors reported an increase in rental prices let above the asking price.
Rob Owens, head of research at e.surv, said: “The buy-to-let market is facing a number of challenges at present, with rising mortgage rates the biggest concern for landlords.
“It is important that the government takes steps to support the buy-to-let market and ensure that it remains a viable investment option for landlords.”