Landlords will ‘sell up’ because of tax changes, claim
The Government’s reduction of landlord buy-to-let tax relief to the 20% basic rate is a major factor for half of all landlords currently looking to sell.
Landlords are also concerned about the Right to Rent checks required from February 1.
The tax changes, announced in the summer Budget, are proving a major concern for buy-to-let investors.
Currently, 9% of landlords think it’s a good time to sell up, with the tax reforms influencing their decision more than any other factor.
Many fear letting out a property will become far less profitable and they are now considering leaving the sector as a result.
Fewer than one third – 31% – of landlords think now is a good time to buy, according to a sentiment survey of more than 1,200 landlords conducted by LSL firms Your Move and Reeds Rains.
Overall two-fifths of UK landlords (44%) believe investing in buy-to-let property is more complicated than it was six months ago.
This is due to more rigorous regulation, including requirements for landlords to check their tenants’ immigration status before they let their properties.
Almost a fifth of landlords (19%) are daunted by this task, and now feel unequipped to let out their houses without the support of letting agents to manage their investment.
Nearly a quarter of landlords (24%) believe the legislation on letting out properties has become more confusing, with more than one in ten (11%) feeling that they don’t fully understand the current regulations.
These changes are denting landlord confidence, and general disenchantment with the letting industry was an important factor for 23% of landlords who think now is a good time to sell.
Adrian Gill, director of Your Move and Reeds Rains, said: “Landlords could be forgiven for feeling a little deflated at the moment and it’s worrying to see this may motivate many to reconsider their investment.”