Twice as many landlords in Wales are selling their buy-to-let investments compared to the rest of the UK, ARLA Propertymark data shows.
The estate agency group said five landlords are selling their properties per branch in Wales, compared to two in the UK.
Propertymark’s chief executive Nathan Emerson reckons this landlord exodus is explained by income regulatory changes affecting landlords in the country.
He said: “Wales is seeing the greatest number of landlords exiting the sector and interestingly, this could come as no surprise to many agents and landlords.
“With several changes on the horizon from the implementation of the Renting Homes (Wales) Act, landlords in Wales will be faced with further regulatory pressure.
“Coupled with the extremely high demand within the sales market in areas across Wales, these could well be contributing to the number of landlords exiting the sector.”
The Renting Homes (Wales) Act will come into force from 15 July 2022.
This will increase the Section 21 Notice period to six months, while notices can’t be issued until six months into the contract. This effectively means tenants have a right to live in the rental property for at least a year.
The act will replace assured shorthold tenancies with a ‘standard occupation contract’ for private landlords
This will make it so landlords have to introduce terms in every occupation contract, like repair obligations.
Landlords also have to send tenants a written statement setting out the rights and responsibilities of both the landlord and contract holder (tenant) within 14 days of moving in.