An increasing number of buy-to-let landlords are looking to sell-off their properties, as Government tax changes leave them with no choice.
New research from the National Landlords Association reveals that the removal of mortgage interest tax relief and the 3% stamp duty surcharge is deterring a number of investors.
In fact, the number of landlords looking to sell-up during the next year has more than doubled since July 2015, from 7% to 16%. This would majorly reduce the supply of needed rental accommodation.
84% of buy-to-let landlords also said that they are not looking to add to their existing property portfolios.
As a result, the National Landlords Association suggests that there will be a net reduction in property transactions by 2018, which will only add to the supply/demand imbalance in the market. This is only likely to drive rents up.
NLA fears mass sell-off of buy-to-let homes
Richard Lambert, Chief Executive at the National Landlords Association, said: ‘There has been a clear correlation over the past year between our findings on what landlords have told us they intend to do in terms of buying and selling in the coming year and their actual transaction activity.’
‘If the trends keep moving in the same direction, then by 2018 we’ll have more experienced landlords selling than buying, contributing to a net reduction of private rented properties,’ he added.