The UK's private rented residential sector has lost approximately 400,000 rental homes since 2016, with many landlords leaving the market due to growing cost pressures and high mortgage rates.
Research conducted by Global Commercial Real Estate Services (CBRE) found that 126,500 rental properties have been sold since the Bank of England began increasing the base rate at the start of 2022.
Additionally, 273,500 properties were sold between 2016 and 2021, which CBRE suggested was prompted by the additional rate of stamp duty for second properties and the phasing out of mortgage interest relief.
Scott Cabot, head of residential research at CBRE, said if sales continue at a similar trajectory, 10% of the UK's privately rented homes could be sold by the end of 2023.
He added: "Changes to policy in the past decade have increased the amount of tax payable on both purchasing a buy-to-let property and its rental income, and ultimately have reduced the viability of buy-to-let investment.
"More recently this has been compounded by high inflation which has driven a rapid rise in interest rates and increased other costs associated with owning and managing a property."
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