There is a “very real risk” of landlords quitting the rental market under the pressure of soaring mortgage rates, a property firm has warned.
According to research conducted by Savills, Investors’ net profits fell below 4 percent in the first quarter of 2023, marking a “dramatic shift in finances” for mortgaged buy-to-let buyers.
Average net profits for landlords are now at their lowest since 2007, due to the impact of 12 successive increases to the interest rates, exacerbated by restricted tax relief, the firm said.
Lucian Cook, head of residential research at Savills said: “Following a boom period for buy-to-let landlords, 2023 marks a turning point for Britain’s private rented sector….