Nearly a fifth of homes on the market have previously been rented – Rightmove

Some18% of properties now for sale were previously on the rental market, compared with 8% in 2010, the property website said.

Some 18% of homes currently for sale were previously on the rental market, Rightmove said (Anthony Devlin/PA) (PA Archive)

Nearly one in five (18%) homes currently for sale were previously on the rental market, according to a property website.

This is more than double the 8% of homes for sale in 2010 that had previously been available to rent and the highest proportion since comparable records started 14 years ago, Rightmove said.

The analysis was based on homes listed for sale, where their most recent previous listing was for rent.

London is a hotspot, with nearly three in 10 (29%) homes for sale having previously been for rent, Rightmove said.

Across Britain, the previous five-year average for homes moving from the rental to sales market is 14%.

There is a worry that without encouragement for landlords to stay in rather than leave the rental sector, it is tenants who will pay the price

Tim Bannister, Rightmove

The website said the trend has been slowly increasing rather than suddenly spiking.

Rightmove property expert Tim Bannister said: “In recent years it has become more attractive for some landlords to leave the rental sector rather than to continue to invest in it, due to rising costs, taxes, and legislation.

“A healthy private rented sector needs landlord investment to provide tenants with a good choice of homes.

“We’ve seen over the last few years how the supply and demand imbalance can contribute to rising rents, so there is a worry that without encouragement for landlords to stay in rather than leave the rental sector, it is tenants who will pay the price.

“However, despite the trend of more landlords choosing to sell up, it doesn’t appear to be a mass exodus, and we will need to monitor the longer-term impacts of what happens to the rental supply that is put up for sale.

“For example, these homes could provide first-time buyers with more choice.

“They might also be purchased by other landlords and put back into the rental market, which would signal a changing of the guard rather than a complete exit from landlords.”

Marc von Grundherr, director of Benham and Reeves in London said: “Buy-to-let remains a strong investment.

“It’s certainly one that most take with a very long-term view and they expect ups and downs, but generally speaking, the returns are consistently good.”