House prices: A huge exodus of tenants is occurring in London as landlords leave the market

LONDON: According to a Hamptons International review of data from Countrywide (LSE: CWD), landlords in the United Kingdom are leaving the market at the fastest rate in the past three years, which will reduce the number of properties available for rent by 66 each day by 2022. (Reported by news source)

Landlords made up 16% of property sales last year but only 13% of purchases, resulting in a 35,000 increase in rental property sales over purchases in 2022 and a 17% increase in net property losses over 2021.

The Bank of England's rate hikes, which have caused mortgage costs to soar, together with unfavourable tax reforms have been regarded as the primary causes of the flight.

Rates on buy-to-let properties have doubled in the last year; for example, HSBC's two-year fixed rate on a mortgage with a 60% loan-to-value is currently 5.49%, followed by a 6.35% variable rate.

Renters have not experienced any relief despite the decline in home prices, with the average London rent increasing by 9.1% annually.