Buy-to-let is undergoing a massive transformation right now. Poor-quality homes are getting squeezed out by tightening legislation, and short-term profiteering has fallen away through changing tax laws. As a result, many landlords have sold up.
Although rents are going through the roof, yields are getting higher, and there’s massive demand from tenants, many landlords are selling their rental homes. For some, it’s part of their long-term plan, but for others, it’s a reaction against changing rules and taxes.
2022 saw the highest proportion of property sales to investors since 2016, with landlords accounting for 12.2% of the sales that year and 19% of the overall UK housing stock. Surprised? Well, it’s not so unbelievable when you look at what’s happening.
Interest rates have dropped since their spike after Liz Truss’s disastrous mini-budget, with buy-to-let mortgages now available from 3.59%.
House prices have levelled off, giving landlords a much better shot at getting a great deal with an instantly higher yield.
Rents have risen sharply because of intense competition among tenants.