Nearly four in five (79%) surveyors have noted a decline in landlords looking to buy new investment properties, an e.surv survey has found.

A new bi-monthly survey of over 500 valuers and surveyors has also found that half of landlords plan to rationalise their portfolio or exit entirely over the last 12 months.

e.surv said that these challenges could have several implications for the UK housing market if left unaddressed, including a reduction in the supply of rental properties and an increase in rent for tenants already facing a cost of living crisis.

Stresses are continuing in the buy-to-let (BTL) market, which e.surv said is having an impact on tenants and landlords, despite the Government’s recent announcement to scrap plans for new minimum energy standards.

Surveyors observed a steady pipeline of homes for sale in the past month, but these typically took longer to sell and asking prices are being squeezed at the top of the market.

e.surv also suggested the demand for rental homes continues to outstrip supply across the UK, with 44% of respondents reporting falls in the stock of rental instructions coming to market. The valuation provider said it is unsurprising that, during a time of high demand, its survey has found that properties are being let more quickly and typically at or above the asking price in the most active rental markets.

Furthermore, 45% of London-based surveyors reported an increase in rental prices let above the asking price, with 40% seeing the time to let a property shorten.

Head of research at e.surv, Rob Owens, said: “The BTL market is facing a number of challenges at present, with rising mortgage rates the biggest concern for landlords. This is leading to a decline in landlords participating in the sales market and an increase in landlords looking to rationalise their portfolios or exit entirely.

“These challenges could have a significant impact on the UK housing market, reducing the supply of rental properties and pushing up rents for tenants. It is important that the Government takes steps to support the BTL market and ensure that it remains a viable investment option for landlords.”

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