IEA Director of Public Policy and Communications Matthew Lesh has written in City AM discussing the unintended consequences of declining buy-to-let sales caused by increased interest rates, high taxes, and burdensome regulations.

Matthew wrote:

“The sector is under pressure from higher interest rates, unfavourable tax changes and regulatory costs imposed by new rental rules and energy efficiency requirements. There has already been a decline in buy-to-let house prices and fewer properties going to landlords.

“Last year just 11.2 per cent of properties were sold to landlords, down from 15.7 per cent in 2015, according to real estate agency Hamptons.

“The declining attractiveness of buy-to-let will also mean fewer properties available in the rental sector today and less investment in future development. A declining number of rental apartments will, by definition, push up rents. The Office for National Statistics found that private rental prices rose by another 6.2 per cent across the UK in the year to December 2023.”

Read Matthew’s full piece here.