British landlords are poised to sell their rental homes at three times the pace of two years ago, as soaring mortgage costs force more people to dispose of their property portfolio.

Around 15pc of people who own rental properties are likely to sell up this year, according to a survey from advisory firm Cornerstone Tax. This is around three times the pace of two years ago, when mortgage costs were much lower. 

David Hannah, group chair of Cornerstone, said: “Many of these landlords took out mortgages on buy-to-let schemes during a period of sustained low interest rates. Fast forward to 2023, and the pressure currently facing landlords is simply too much.” 

Mr Hannah added: “We are generally seeing an exodus of landlords from the capital and South East, looking towards the North East of England instead. It’s a region that’s seen the highest growth in property prices in the last twelve months, with many seeing it as a much safer investment than the capital.”

It is expected to pile pressure on renters, who are already facing spiralling prices to find properties in major cities such as London. 

Earlier this week, figures suggested that around two-thirds of London’s buy-to-let investors who have bought properties this year have done so in other parts of the country.

The North of England is the biggest winner from the shift, now accounting for 24pc of all purchases by London landlords.

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