The National Landlords Association (NLA) has carried out research in the private rental sector, which reveals that 19% of landlords surveyed intend to sell some or all of their portfolios in the next 12 months. 45% of these landlords plan on offloading flats and 33% plan on selling terraced properties. This is good news for first-time buyers, as both flats and terraces are perfect first-time buyer properties. Only 7% of landlords looking to sell intend on selling their properties to other landlords, so first-time buyers could be in for a windfall.
However, Richard Lambert from the NLA has signalled caution:
“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”.
Significant Barriers to Home Ownership
First-time buyers face considerable hurdles on the path to property ownership, especially for younger would-be buyers living in the south-east. The government has tightened lending criteria, so it is no longer quite so easy to secure mortgage finance.
Many first-time buyers will also struggle to save up enough for a deposit, with sky-high rents in some areas hampering their ability to save.
Those who can’t afford to buy will be left renting for the foreseeable.