Research carried out by the National Landlords Association has revealed that 19% of landlords in London plan to sell their properties in the near future. When compared to the 4% figure from the previous survey, this represents a significant rise in landlords looking to leave the private rental sector.
Changes to Landlord Tax
The NLA and other landlord agencies believe that recent changes made by the Chancellor in last summer’s budget are to blame. New restrictions to mortgage interest rate relief will lead to higher tax bills for many landlords because tax will be calculated on rental income rather than profit. An increase in stamp duty land tax is also pushing many landlords to sell up to avoid being slammed with huge stamp duty bills.
Turnover Tax
Richard Lambert, CEO of the NLA, 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.
“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”.
