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Selling landlords cite changing laws and tax as biggest reasons

Most landlords intending to leave the private rented sector during the next two years have cited changing regulations or taxes as their main reasons, a report by The Deposit Protection Service has found.

Overall, 47% of landlords are considering selling some or all of their portfolio, with 89% saying they’re influenced by changes or proposed changes to legislation or regulation.

Some 94% said that proposed reforms to Section 21 evictions were influential, 91% said the Renters’ Rights Bill, while 91% said capital gains tax changes.

Matt Trevett, managing director at The DPS said: “The proportion of landlords planning to exit the PRS altogether has remained largely static over the last few years, and the well-publicised shortage of rental properties continues.

“Our report shows that the legislative and taxation landscapes are becoming greater influences on landlords’ thinking, with just under 90% citing laws or tax as a key reason for their intended departure.

“Rising materials costs — which have a direct impact on property maintenance prices — and the cost of buy-to-let mortgages are also affecting respondents’ plans.”

Just under a quarter (24%) plan to sell all their properties during the next two years, up from 20% in May 2024.

Almost two thirds (61%) said they had purchased all their properties to specifically use as rentals, while 30% had either inherited the property or had bought it originally as their main home. Of those questioned, 57% said they owned one or two rentals, with 38% owning between three and 10.

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