The property market is hot right now, and guess who’s cashing in? Landlords! New research shows that more landlords are snapping up rental properties than ever before.

A recent study by the TDS Charitable Foundation surveyed over 2,000 landlords and found 19% of them bought new properties in the last year. In comparison, only 13% sold a property. This means that more rental homes are being added to the market.

However, the study also reveals that there are still far more renters looking for homes than there are available, a trend that could drive up rental prices even further. Rightmove, a property website, estimates that there are 17 households competing for every rental property!

What’s Driving This Trend?

So, what’s driving this rise in landlord buying? Well, it seems that many landlords are taking advantage of the current market conditions, with falling interest rates and rising property prices making it a lucrative time to invest.

However, many landlords are concerned about the upcoming Renters’ Rights Bill, which aims to improve tenant protection. This is prompting some landlords to sell up, worried about the stricter rules and regulations.

Is It Time To Invest?

With so many landlords buying up properties, it’s natural to wonder if this is a good time to invest yourself. The potential for rental income is definitely there, but it’s important to remember that the market is constantly changing.

The Renters’ Rights Bill could have a significant impact on the rental market, so it’s essential to do your research and understand the potential risks before making any investment decisions.

Is This A Good Thing?

The research highlights a growing imbalance between the number of properties available to rent and the number of people looking for them. This imbalance could lead to:

• Higher rents: As demand for rental properties continues to outpace supply, landlords can push up rental prices, making it harder for renters to find affordable housing.
• Increased competition: With fewer properties available, renters face more competition and may need to offer higher deposits or accept less desirable properties to secure a home.
• More power for landlords: The shortage of rental properties gives landlords more leverage in negotiating with tenants, making it harder for renters to challenge unfair practices.

The Future of the Private Rented Sector

The government is committed to reforming the private rented sector, but more needs to be done to address the imbalance between supply and demand.

The TDS Charitable Foundation has called on the government to focus on boosting the choice renters have when it comes to finding a home. Without action, tenants will continue to struggle with an increasingly competitive market.