“This is not only a blip – it’s a structural shift,” Vidler stated. “Investors are promoting up, and the houses they go away behind are sometimes snapped up by owner-occupiers, completely eradicating them from the rental pool.”
PIPA’s 2024 Annual Investor Sentiment Survey discovered that 14.1% of traders offered a minimum of one property previously 12 months, up from 12.1% in 2023. Of those that offered, almost two-thirds had held the property for lower than a decade, and virtually one in 5 had owned it for below three years.
“These should not long-term traders cashing out after a long time,” Vidler stated. “They’re individuals who entered the market with good intentions and had been pressured out by rising prices and coverage uncertainty.”
Survey respondents cited a variety of causes for promoting, with 44.1% pointing to increased common holding and compliance prices, and 35.4% referencing elevated land tax and authorities costs. However, Vidler famous that anxiousness about potential federal tax modifications was a key concern.
