Some 170,520 landlords bought a property in the last 12 months compared to 255,780 a year earlier – demonstrating that the market has drastically slowed in that time.
Just 6% of the UK’s estimated 2.84 million landlords have purchased a property in the past year, down from 9% in Q1 2024.
On 31 October 2024 the stamp duty surcharge on investment properties was increased from 3% to 5%, which is likely to have put off new investors from buying property.
The analysis comes from lettings acquisitions firm Dwelly based on figures from lender The Mortgage Works.
Sam Humphreys, head of M&A at Dwelly, said: “An 85,000 drop in annual landlord purchases is a clear signal that confidence has been dented by regulatory uncertainty, higher borrowing costs and slower house price growth.
“But this is not a mass withdrawal from the market, landlords are simply taking stock and who can blame them with the Renters’ Rights Bill set to bring substantial changes to the sector.
“Despite this uncertainty, the fundamentals of the rental sector remain strong, and once the Renters’ Rights Bill is finalised we expect many will return to buying, particularly in those regions where rental properties continue to bring strong returns on investment.”
The North East is the most active market, with 17% of the region’s estimated 67,000 landlords buying a property in the last year, down from 22% a year earlier.
However, the East of England recorded the highest number of landlord purchases over the past year, with 23,360 transactions.
The East Midlands followed with 21,720 purchases, while the South East was third at 18,760.
Wales is the slowest landlord market, with just 2,180 purchases.