LANDLORDS will continue to quit the property market in record numbers – further driving up rents.

That’s the warning today from one of the country’s leading property associations.

The National Association of Property Buyers, say current market conditions are leaving it “deeply unattractive” for landlords to enter and are causing many existing ones to sell up and quit.

Spokesman Jonathan Rolande said: “At the moment with such a lack of capital growth, you have to ask who would choose to be a landlord?

“Higher rents have gone some way to balance the books but many with a mortgage do little more than cover the interest each month. More landlords will try to quit this year as capital values and saleability falls.”

Mr Rolande also said that he expects overall activity in the housing marke to drop off sharply in the next six months.

He said: “The traditional dip in sales during the holiday season is almost upon us. Expect sales volumes to fall over the next six weeks exacerbating the downward pressure on prices. The normal bounce in September is likely to be very subdued as the burden of increased interest rates begins to bite. Those with an existing mortgage are more unlikely to move upmarket, landlords – at least those requiring a mortgage – are not expected to add much volume to their portfolios and many more will exit altogether, selling in the Autumn market. With the current circumstances, a price freefall is very unlikely but an increased supply of property and reducing buyer numbers will inevitably lead to anxious sellers slashing prices to attract a diminishing number of purchasers. In terms of property, it looks like there is a very bleak Winter ahead.”

Last week a report revealed that buyer interest, sales and property prices suffered in June as mortgage rates continued to rise.

June saw new buyer enquiries reach an eight-month low, pointing to a ‘renewed deterioration’ in the UK sales market, according to the Royal Institution of Chartered Surveyors (Rics).

Property prices continued to slow in June and many estate agents surveyed by Rics think further falls could be on the cards in the coming months.