A third (35%) of landlords plan to sell properties in the next 12 months, research from buy-to-let lender Landbay has revealed.
The biggest reason for doing so is landlord taxation, as the lack of mortgage income tax relief has hit landlords harder in times when rates are higher.
Just under half (46%) intended to sell due to worries about evicting difficult tenants, in light of the Section 21 eviction ban coming into force as part of the Renters’ Rights Bill.
Fluctuations in mortgage rates is less of concern, but still listed by more than a third (39%) of landlords – down from 48% previously.
At the other end of the spectrum almost half (47%) of landlords said they have no interest in selling any properties.
Rob Stanton, sales and distribution director at Landbay, said: “While government policy and taxation may be out of our control as a lender, it’s important that we continue to use the skills and capabilities we do have to give landlords the options and the confidence to stay put in the market.
“Just recently, we launched our product transfer offering to give brokers another option to support landlords when refinancing. The initial feedback has been really positive and we hope it continues to help landlords of all sizes as they weigh up their options.”
Among the landlords who didn’t want to sell, most had 4-10 rental properties (36%), closely followed by those with portfolios of 11-20 properties (26%).
The overwhelming majority owned their rental properties through a limited company (75%), which is an effective way of managing rental stock efficiently from a tax perspective.
