A quarter of landlords plan to exit the market this year
A quarter (26%) of landlords plan to cash in on at least one property this year, potentially putting half a million homes up for sale, research by landlord insurance provider Simply Business has found.
What is more, four fifths (82%) of landlords are not planning on buying any more properties in 2020.
The top reasons landlords gave for wanting to sell are tax increases and government reform, such as shifting House in Multiple Occupation (HMO) licensing, which added new stipulations on the minimum size of rooms, as well as banning of admin fees.
Bea Montoya, chief operating officer at Simply Business, said:
“Landlords around the country are telling us that government reforms, tax increases, and rising rental costs are forcing them to put their investments up for sale.
“The tax increases imposed by the government are proving counter-productive for landlords, while ongoing political and economic uncertainty hasn’t been providing landlords with the confidence they need to stay in the market.
“But selling a buy-to-let is a big decision, especially if you’re selling more than one.
“Any landlord looking to sell up should make sure they understand the complexities surrounding buy-to-let sales, particularly if the property is occupied.
“Any tenants should be made aware of plans to sell as early as possible and given reassurance their tenancy still stands.
“When it comes to selling, landlords need to understand any tax implications involved, such as capital gains tax. If the property is sold for more than it was paid for, there will be a capital gains tax liability.”
Kindly shared by Property Wire