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A growing number of private landlords are planning to exit the buy-to-let market, prompting fears that rents will rise sharply up as the number of homes available to rent falls.
New research undertaken by MakeUrMove reveals that up to three quarters of existing landlords may be forced to sell property due to continued financial pressure and new legislation being introduced by the government.
The government’s decision to introduce a 3% buy-to-let surcharge on stamp duty from April 2016 and phase out tax relief on buy-to-let mortgage interest has deterred many buy-to-let landlords.
As well as selling up their existing properties, many landlords are no longer interested in buying new properties.
With the upcoming legislative changes in the buy-to-let market, 41% of landlords indicate they will be forced to increase rents, which will adversely affect tenants.
Learn Change and Adapt ?????
Given that more than half od landlords do not have mortgages this is a ridiculaous claim probably based on taking a biased survey at face value.
Im not sure it could be totally wrong although I think its high for the numbers who would leave
I was with a group of Landlords Last night and Yes S24 is putting them off buying more property
But I think there is a growing number of Landlords looking further ahead and thinking do I really want to be a Landlord
Further regulation will put more landlords off
PRA is another factor and so on
Landlords who have had a good run may well leave the sector Pay the CGT and than they are free from the hassle of being a Landlord
There has to be a large enough carrot to invest in BTL If the Carrot becomes so small
Landlords will sell
Do we ever see good news ahead of us
I cant think of one Part of the Landlord Sean at present which is good news
But I can see a lot of Bad news coming
we have EPC regs change in aril
a landlord who is sitting on a good profit on a property with a poor EPC may sell Rather than upgrading
What has happened to affect a typical landlord like my sister - one property no mortgage? The extra SDLT, PRA changes and S24 will not affect her directly. If other landlords sell up and a shortage of rental properties arises she will be able to change a higher rent.
she may have a licence to Pay in future
and face rent control Peter
The problem is the Landlord sector is concerned with good reason and that's why they will sell
I suspect it is only a small part of the landlord sector that is worying, and probably much of it is unawares of the issues mentioned in the article or spends much time speculating about things that might possibly go wrong in the future. Certainly there is a small proportion that do but I strongly suspect it is less than 10%.
" I was with a group of Landlords Last night and Yes S24 is putting them off buying more property "
This is what I feel will be happening more and more, especially in the SE, hence why more and more SE LL's that want to still be in the game/expand are looking 'up north'.
+3% SDLT and S24 tax increases are making a lot of investors look at alternative strategies.
I agree with you I for one has changed strategy
If I was not Building to Rent I would not be buying into more BTL with leverage
None of us know what the next Govt will introduce and that's hits confidence
Many landlords have more than ten mortgaged properties and those with no mortgages are likely to only have one or two houses.
I think it depends how your are analyising 1/2 of landlords.
If half of landlords have 1 or 2 unencumbered properties and the other half have 4 or 5 mortgaged properties this will have a great impact if the latter half sell.
There will be many landlords who have more than 20 mortgaged properties that will skew the figures further.
I'd have to say as a landlord with a decent sized portfolio im not seeing much more than selling up and getting out ;-(