“Strong rental growth is softening the blow {for landlords], but they’re also drawing on their equity and cash reserves to see them through. Portfolio investors – who tend to be more highly leveraged – are juggling their assets by selling one or two properties to reduce their mortgage debt on the rest of their portfolio, rather than selling up entirely.
“The real supply issue facing the private rented sector hasn’t just been caused by landlords selling up, but also because there’s been little appetite among investors to purchase new buy to lets over the last few years. This has reduced the number of homes available to rent which is fuelling rental growth.”