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380,000 buy to let investors might be about to sell at least one investment property, bringing a potential flood of new homes to the sales market.
According to the National Landlords Association, 19 per cent of all landlords are considering selling a property. Of that number, almost half have stated that within a year they could be likely to sell a flat. Another third have said that they are likely to sell a terraced house.
Both of the aforementioned property types are typical homes of choice for first time buyers. According to the NLA, this is good news for these purchasers, although the influx of new homes on the market might reduce prices across the sector.
Significantly, a mere seven per cent of landlords who plan to sell have stated that they intend to sell to other landlords, suggesting that a large number of new homes might be leaving the sector in future.
NLA chief executive, Richard Lambert said: ‘These findings sound like positive news for potential new homeowners, but the reality is not everyone wants, or is in a position financially, to buy. In fact, if all these homes are sold as planned then it will lead to a significant fall in the supply of property available to those who choose to rent, or have no other option but to rent’
He continued, stating that the negative relationship between landlords and first time buyers is often misrepresented: ‘Everyone seems to have a gut instinct about the extent to which they feel landlords and first time buyers compete for homes in the UK, but homeownership is a highly emotive issue so the facts are often overlooked. There’s certainly no denying that competition exists, but the significant barriers to homeownership are more likely to be the high cost of a deposit or ability to access mortgage finance.’