Fifth of landlords to sell investment properties
A survey of almost 3,000 landlords suggests more than one in five plans to sell at least one of their investment properties in the coming year – making the current shortfall of homes to rent even more acute.
The Residential Landlords’ Association says 22 per cent plan to sell at least one; a significantly smaller 18 per cent are planning to buy additional investment properties to rent.
The association also says 33 per cent of landlords have seen an increase in demand for investment properties to rent over the past three years.
Faced by an imbalance in the supply and demand for rental properties, 47 per cent of landlords indicated that they expected to increase rents over the next year. 35 per cent indicated that the changes to mortgage interest relief which will see landlords taxed on their turnover rather than their profit, unlike all other businesses, was the main reason why rents might increase.
Commenting on the findings, RLA Chairman, Alan Ward, says: “Punitive tax changes are discouraging investment by the majority of good landlords who want to provide accommodation. Whilst efforts by the Government to support institutional investment in the sector are welcome, this will remain a drop in the ocean.
“To meet demand, we need pro-growth taxation that actively supports and encourages the majority of landlords who are individuals providing good housing, to invest in the new homes to rent we so desperately need.”