Landlord exodus leads to huge over-supply of homes on sale

A prominent index suggests that areas of Greater London, the South East and the South West are facing a 12-year high in sales stock levels. 

And it appears much of the reason is the exodus of landlords, quitting the private rental sector because of taxes and red tape.

The Home index says the level of over supply in some southern England regions is such that vendors “are increasingly willing to take a hit on their expectations in order to secure a sale.”

This is in marked contrast to areas of the north of England and Scotland. 

Home’s director, Doug Shephard, puts much of this stock glut down to the increasingly-unviable private rental sector.

He says: “Yields remain significantly better in the North and this factor does not look set to change soon. In certain postal districts of London and the South East, rental yields are less than 3%; certainly not enough to pay a significant mortgage and all the other associated expenses. Meanwhile, savvy investors can find yields as high as 12% in certain postal districts, all of which are to be found in the North.

Read the full article at Landlord Today