Some landlords move to sell buy-to-let properties
According to recent reports, a growing number of landlords in the United Kingdom with multiple properties are looking to sell their residential real estate, as vacancy levels increase and as rental values either stagnate or decline in some parts of the country. This trend appears to have accelerated following the collapse of Brandford & Bingley, one of the most prominent names in the buy-to-let industry. Experts agree, however, that this trend which is seeing landlords put their properties up for sale and leave the residential rental sector can have both positive and negative affects on those landlords who choose to keep their portfolios.
On the one hand, the fact that some landlords are choosing to leave the rental sector may very well either help push rents up, or at the very least, keep them from falling further. The balance between supply and demand may become more advantageous for landlords in the near future, provided that this trend continues. But this does not mean that residential landlords will have bypassed all risks and challenges. Experts warn that as a growing number of buy-to-let properties flood the market, their sale value may very well decline noticeably, and some fear that already low prices might take a dramatic plunge. As such, any gain that landlords might experience from stabilized rents would soon evaporate as their residential properties more of their market value. While some had originally assumed that government legislation which will delay the repossessions of privately-owned properties for at least six months might bring stability to the housing market, this has yet to occur.
Thank you to FinancialAdvice.co.uk for the initial report.