More than 500 rental properties a day may be exiting the private rented sector, according to estimates by property data firm TwentyEA. The firm attributes this trend to increasing tax, regulatory, and cost pressures on landlords.
However, John Minnis Estate Agents suggests that an inheritance boom could introduce a new wave of buy-to-let investors. The agency points to Resolution Foundation research indicating that 2.1 million adults received an inheritance between 2018 and 2020, an increase from 1.7 million in 2008-10.
Approximately 32% of these recipients, around 670,000 people, received at least £50,000 during the 2018-20 period. While there is no confirmation these individuals will become landlords, the agency argues that even a small percentage investing in property could create a significant pool of new entrants.
John Minnis, founder of John Minnis Estate Agents, stated that substantial inherited wealth could offer new financial choices, including purchasing a rental property. The agency modelled that if 1% of those receiving at least £50,000 invested in rental property, it could equate to around 6,700 new investors.