Plans by landlords to sell their properties could lead to a sharp increase in the number of homes suitable for first-time buyers coming onto the market.
According to the figures from the National Landlords Association, as many as 380,000 landlords (19%) intend to offload property in the next 12 months, which it says is good news for first-time buyers but bad news for renters.
The figures indicate that 45% of landlords who intend to sell property in the coming year plan to sell individual flats and apartments, with a third (33%) looking to sell terraced homes – both of which are typically affordable and attractive options for those taking their first steps on the property ladder.
Significantly, just 7% of landlords who plan to sell say they intend to sell to other landlords, signalling renewed hope for many first time buyers and homeowners looking to progress up the property ladder.
“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,” said Richard Lambert, CEO of the National Landlords Association. “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”.
“Everyone seems to have a gut instinct about the extent to which they feel landlords and first-time buyers compete for homes in the UK, but homeownership is a highly emotive issue so the facts are often overlooked,” he added. “There’s certainly no denying that competition exists, but the significant barriers to homeownership are more likely to be the high cost of a deposit or ability to access mortgage finance.”
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