It has long been agreed that there is a shortage of supply of property in the UK housing market. There is a wide range of problems associated with the property market and while a lot of factors influence the market, the biggest issue is the lack of affordable housing. There is a need for more affordable homes in the UK and there have been calls for the Government to intervene in this manner. However, it appears that a glut of houses may be placed up for sale and it is all down to landlords believing they have no other option but to leave the market.
In figures provided by the National Landlords Association, the NLA, close to 380,000 landlords may decide to dump their rental properties onto the market in the next year. The organisation regularly polls their members and in speaking to the landlords who are looking to sell their property, 45% of the questioned members stated that they plan to sell individual flats and apartments. Around one third of respondents announced that they would look to sell their terraced homes.
Tenants may suffer if landlords sell their property in large numbers
The organisation has said that this news could be very welcome for first-time buyers but of course, there is usually a flip side in the property market. Positive news for one group usually results in negative news for another party, and tenants are set to be hit badly if there is a significant fall in the supply of rental property to the market.
Rental stock would be lost but first-time buyers would benefit
This has been reiterated by the fact that of the landlords who have stated an intention to sell their landlords, only 7% of these landlords have intended to pass this property to other landlords.
The Chief Executive of the NLA, Richard Lambert, released a statement, saying; “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.”
At Spencer Harvey, we understand the problems that buyers, sellers and landlords face in the Stockport and Greater Manchester property market. While we recognise the need for more property to be made available to the marketplace, the rental market is also hugely important, and this sector needs to be protected too. If you want to stay informed with what is happening here, you can give Spencer Harvey a call on 0161 480 8888 or send us an email at info@spencerharvey.co.uk. For a free valuation please visit: https://www.spencerharvey.co.uk/valuation-enquiry.html