Letting and Estate agents are increasingly concerned that taxes and legislation are making the buy to let sector untenable, especially in high priced areas like London.
New figures from ARLA Propertymark reveal that the number of properties available to rent in London fell to 46 per cent below the national average in January.
As landlords are increasingly priced out of the capital, tenants are finding themselves up against stiff competition for rental properties. In January, letting agents in London were typically managing 99 properties, compared to a national average of 184. It was also the lowest region for supply in December, but it stood at 130 then, compared to a national average of 200.
Professional letting agencies and estate agents are expressing concern that taxes and legislation could drive legitimate landlords either out of the sector altogether, or risk them moving them away from using professional agencies, leaving tenants at risk from rogue landlords.
David Cox, Chief Executive, ARLA Propertymark comments:
“The rental market in London should be thriving – the capital is a hub for business and culture and attracts a huge influx of new residents every year. But the prospect of being a landlord is becoming less tenable, as potential buy to let investors are deterred by increased taxes and ever more complicated legislation – and higher property prices in London are making it becoming more and more difficult for landlords to make ends meet.
“Government policies designed to help renters now seem to be having the opposite effect, as landlords are moving away from using professional agents. This puts tenants at risk of falling into the hands of rogue landlords, or novice ones who don’t have any experience in the sector.”