The number of former rental properties currently for sale has risen dramatically as more landlords exit the market or downsize.

According to new analysis by TwentyEA, 18% of properties listed for sale in June (28,000) had also been listed for rent within the previous three years - 100% higher than the previous year and 34% higher than in June 2019.

Katy Billany (pictured), executive director of TwentyEA, says: “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.”

Its research shows that pressure in the sector is starting to ease from the duress caused by stock shortages, high demand and ever-increasing rental costs.

New instructions have risen by nearly 5% compared with Q2 2023 and lets agreed by nearly 19%. However, stock levels and availability remain at historical lows and with demand significantly outstripping supply, rental price increases continue.

Snapped up

Everywhere apart from inner and outer London there is an average of only a month’s worth of stock available to rent, meaning that a property coming to let is snapped up almost immediately. All regions have seen a rise in lets agreed year-on-year, with Scotland experiencing a huge 25% increase compared with the same quarter last year.

The average asking price across the UK based on available stock is now £1,869 per month compared with £1,762 a year ago. TwentyEA reports that much like the owner-occupied market, renters are either adjusting to higher rental prices or are unable to afford homeownership and therefore have little choice but to accept the substantial cost of renting a property.