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.