TwentyEA: Increasing numbers of landlords ‘selling-up’

There’s been a “substantial rise” in landlords exiting the market or downsizing their portfolios, analysis by TwentyEA has found.  

Figures from the property data company show 18.4% of all properties listed for sale in June had also been listed for rent within the three years prior to the sale listing

This was just over 28,000 properties and was 100.6% higher than June 2023 and also 34.6% higher than in June 2019. 

It was also 27.4% higher than May 2024 - the month that Rishi Sunak called the General Election for 4 July.   

Katy Billany, executive director of TwentyEA, said: "There's no doubt our data shows a significant uplift in the number of landlords selling up, either reducing their portfolio size or possibly exiting the sector completely.  

“There's currently a lot of uncertainty in the buy-to-let market around what the change in government means for landlords but they have also been hit by steep interest rate rises and rising costs generally, so it's likely there are several factors at play here." 

Further market insights from the report show the supply of new instructions is up by 8.6% at around 477,000 for the quarter and sales agreed have increased by 15.1% annually.

Both metrics have now exceeded the levels seen before the Truss/Kwarteng tenure and those prior to mortgage affordability and availability challenges, TwentyEA said.

Exchanges also increased by 10.4% annually.

Properties priced between £200,000 to £350,000 have seen an increase of over 3.5% in exchanges, while those in the £350,000 to £1m range are up by 1.3%.  

Conversely, the lower end of the market, properties up to £200,000, has declined by 4.6%.

For properties priced over £1m, a decline of 2.3% indicates that even those less affected by affordability concerns are experiencing a subdued market at the upper end, according to the research. 

TwentyEA’s analysis found exchanges increased by 12.8% among elderly households (age 66+) and a modest increase in exchanges among those aged 46-65. 

For all age bands under 45, there has been a dramatic reduction in the volume of exchanges, TwentyEA said, highlighting the pressure of higher mortgage rates on younger demographics.

Billany said: “This analysis highlights how different age groups are uniquely impacted by current economic conditions. Older, mortgage-free individuals can navigate the market more freely, while younger age groups face greater financial obstacles.” 

“While property exchanges have increased in Q2 2024 compared to Q2 2023, this is not a universal trend across all income brackets. The degree of impact varies significantly, with higher-income households demonstrating greater resilience in the face of economic challenges.”