Letting agents around the country have reported that institutional and portfolio landlords are moving in to buy stock from exiting landlords.

The RICS UK Residential Property Survey for December reveals that agents expect further rent rises in the next few months, likely due to a continued trend of landlords placing their properties for sale, (net balance of +37%, up from +29% in November) leading to a lack of supply for tenants.

Many report concern among landlords, causing them to sell up, including John Chappell, at Chappell & Co, in Skegness, who suspects that the upcoming Renters’ Rights Bill, proposed EPC changes and IHT implications will all combine to decimate the market further.

Legislation

However, John Halman, at Gascoigne Halman in Wilmslow, believes that while some landlords have left the market due to the upcoming legislation, many more are expanding their portfolio and still see property as a good long-term investment.

“Whilst some landlords are selling, they are selling to other landlords,” says Alex McNeil, at Bramleys in Huddersfield. “There is now a new breed of landlord unlikely to be phased by the Renters’ Rights Bill. Multi-unit blocks remain a popular investment.”

Exodous

Ron Taylor, at Stroika in London, adds: “More institutional and corporate landlords are filling the voids of the landlord exodus which should mean a better quality of homes available.”

The RICS report shows that tenant demand remained broadly flat for the second month in a row (net balance -3% versus -2% previously). It believes that while some of this may reflect seasonal patterns, it still marks the first period since 2020 in which the tenant demand indicator has fallen below zero. At the same time, landlord instructions continue to slip, with the latest net balance falling to -27% from -13%.

‍