There are far more landlords planning to sell off property than invest in the next year, new research from Pegasus Insight has indicated.

A study by the firm revealed that 39% of landlords said they would probably exit the market within the next five years, while just 22% said they have no intention of selling.

The latest Landlord Trends report from Pegasus Insight was based on 882 online interviews with landlords who are currently members of the National Residential Landlords Association. The findings also showed that 37% of landlords intend to reduce the number of properties in their portfolio in the next 12 months, almost double the proportion planning to sell in Q1 2022 (20%).

Over the same timeframe, those planning to expand their lettings portfolio has fallen from 18% to 6%.

Recent sales activity is now running at almost four times the level of recent purchases, with 22% having sold a property in the last year, and just 6% having bought. More highly leveraged landlords with four or more buy-to-let mortgages were the most active, with 11% buying a property in the last 12 months and around three times this number selling (31%).

Founder and director of Pegasus Insight, Mark Long, said that the results suggest there is a “large cohort of disillusioned landlords”, who are worried about the future of the sector and further demands the Government might place on them.

“Our research confirms that many landlords are deeply concerned about the impact of the Renters’ Rights Bill, energy efficiency requirements and a potential hike in Capital Gains Tax on buy-to-let property,” Long added. “The fact that so many feel impelled to sell up despite the underlying health of this market is particularly galling.”

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