Number of Landlords Looking to Sell Quadruples in Six Months

The number of residential landlords in central London who are looking to sell their rental properties has quadrupled since last year’s Budget, according to new data from the National Landlords Association (NLA).

When surveyed before last year’s Budget, just 4% of private landlords had plans to sell property. However, the proportion has almost quadrupled, rising to 19% when surveyed in January this year.

The 15% growth in intention to sell rental property is the highest seen across the UK in the past six months.

The smallest increase in intention to sell was from residential landlords in the North East, rising from 17% in June last year to 24% in January – up by just 7%.

The reduction in mortgage interest tax relief for individual residential landlords – announced in last year’s Budget – will leave many landlords making losses, forcing some basic rate tax payers into a higher tax bracket, and leaving higher and additional-rate tax payers with significantly higher tax bills.

The NLA has named the change the Turnover Tax, as landlords’ tax will be calculated on the rental income they receive, rather than their profits.

The CEO of the NLA, Richard Lambert, says: “Local property markets vary greatly across the United Kingdom, but we are seeing a loss of confidence across the board as many landlords realise they won’t be able to remain in the market.

“If landlords follow through with their intentions over the coming months, this could lead to a massive sale of property, as we have previously warned. However, this may not be a straightforward process, especially for those with stock in low demand areas.”

He adds: “We urge those considering selling up to think about when they will need to do so, and to plan ahead now in order to minimise the risk of losing money as a result of a failure to sell.”¹ 

How many landlords plan to sell around the UK?

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Are you planning on leaving the private rental sector or reducing your portfolio due to the tax changes?

For more advice for landlords on how the changes will affect you, this piece by a leading finance expert will help you understand the impact: /contrary-to-popular-belief-buy-to-let-is-not-dead-insists-finance-firm/

¹ http://www.landlords.org.uk/news-campaigns/news/proportion-london-landlords-looking-sell-quadrupled-in-last-six-months