Rightmove says the UK's long-running shortage of homes is being worsened by an increase in properties being snapped up by buy-to-let investors.
Declining levels of churn within the owner-occupation sector - down from a peak of 71 per cent of all housing stock in 2003 to 65 per cent today - mean that this shrinking sector has less ability to meet demand from existing owners who want to move, or first time buyers attempting to get on the ladder.
This is exacerbated by the massive growth of the buy-to-let investor sector, up by 2.6 million homes since 1996. Buy-to-let investors' long-term investment strategy means they typically do not sell as frequently as owner-occupiers, resulting in reduced supply and choice for owner-occupier buyers in lower price sectors says Rightmove's director and housing market analyst Miles Shipside.
Things will get worse before they get better, he forecasts.
More property could be effectively removed from the market when the buy to let sector sees a further boost from April, as agents are already reporting preliminary enquiries from retirees planning to cash in their pension pots and invest in buy-to-let properties to secure a steady inflation-proof retirement income he says.
Yesterday Estate Agent Today reported that Rightmove's statistics show that the average available stock for sale per estate agency branch for the last two months (57 and 58 properties) has never been lower at the beginning of the year. New seller numbers this month are also 4.0 per cent below those recorded in the same period in 2014.
Comments
The Tories probably think another boom in house prices from April will improve their chances in the election in May. They could not be more wrong. A move like this will encourage young people to vote, and they're going to vote for the only party that is saying it's time to stop mortgage interest relief on BTL. The Green Party will be the main beneficiaries of this stupid policy.