The number of landlords planning to sell rented properties has reached its highest rate on record, according to the National Residential Landlords Association (NRLA).

A poll commissioned by the organisation from BVA-BDRC found that, during the first quarter of this year, 33% of private landlords in England and Wales said they planned to cut the number of properties they rent out.

This is an all-time high level and up substantially from 20% a year ago.

By contrast, only 10% of landlords now say they plan to increase the number of properties they rent out.

Demand increasing

This planned sell-off from landlords comes despite demand being at a record high.

According to the NRLA research, two thirds (67%) of landlords said demand for properties from prospective tenants was increasing. In every region of England and Wales more than 70% of landlords said demand had increased, with the East of England recording the highest levels of demand.

Supply crisis to worsen

The NRLA is now warning that the supply crisis is set to deepen further without action from government.

It has called for a full review of the impact of tax rises on the sector and for ministers to ‘develop new, pro-growth policies’.

The association said that, when ministers end Section 21 repossessions, landlords need confidence that ‘where they have good reason to end a tenancy the courts will consider and process such cases swiftly’.

It currently takes around six months between a landlord seeking to possess a property via the courts to it actually happening.

Ben Beadle, chief executive of the National Residential Landlords Association, said: “Renters are bearing the brunt of the supply crisis. Without change, matters will only worsen over the coming year.

“The Government needs to reverse its damaging tax hikes on the sector, which have discouraged the provision of the homes tenants desperately need.

“Moreover, responsible landlords need to have confidence that they can take back possession of their properties swiftly and effectively when they have good reason to when Section 21 ends.”