Some 11 per cent of the homes on sale right now are owned by landlords quitting the private rental sector.
That’s the claim from Zoopla in the portals latest market snapshot.
This is actually not the highest proportion ever seen – in 2020 some 14 per cent of homes on sale were listed by landlords, but the figure had gradually decreased since then.
Five years ago, around 50 per cent of these rental properties listed for sale returned to the rental market – either unsold or bought by another investor. However, only a third are returning to the rental market more recently.
Zoopla says that on average these ex-rented properties are 25 per cent cheaper in asking price than owned homes (typically £190,000 vs £250,000). “They are appealing to first-time buyers, particularly in light of tougher buying conditions this year” says Zoopla.
Other key points in the latest Zoopla market analysis include:
– House prices have fallen 1.3 per cent in the last six months but the speed of falls is reducing as buyer confidence improves;
– Sales have reached their highest point this year and are now up 11 per cent on the five-year average, therefore encouraging more sellers into the market;
– There are big regional variations with Scotland, the North East and London are currently the best-performing regions;
– Mortgage regulations have helped dampen the impact of higher mortgage rates on house prices so far – although the rebound in activity could be impacted if mortgage rates start to increase in the second half of this year.
“Sellers shouldn’t get carried away by more positive data on the housing market and need to price their homes realistically if they are serious about moving” says Zoopla research director Richard Donnell.
“Homebuyers remain price sensitive with one eye firmly on the outlook for the economy, the cost of living and the trajectory of mortgage rates.”
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