Confidence knocked post tax changes

Confidence knocked post tax changes

9:53 AM, 20th November 2019, About 2 years ago 2

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A majority of private landlords say they are less confident about the market than they were three months ago.

This is reflected in figures showing that the gap between the percentage of landlords planning to sell properties and those planning to buy has risen seven fold in the last two years from 4 percentage points to 21 percentage points.

One positive outcome for tenants is that many landlords are not increasing rents with two thirds freezing their rents over the last year.

Confidence is at its lowest in London and Wales and highest in the West Midlands followed by the North East and Yorkshire and The Humber.

The figures, which are contained in the Residential Landlords Association’s latest Confidence Index, show that in the third quarter of 2019, 55.1% of private landlords are less confident about the market.

A third, 34%, of landlords are planning to sell property over the next year compared with 22% two years ago. Just 13% plan to purchase at least one property to rent out compared with 18% two years ago.

The chief reasons given by landlords for the loss of confidence and causing them to sell up are recent tax changes which are adding to increased costs.

David Smith, Policy Director for the Residential Landlords Association, said: “We warned the government that the tax increases they have imposed on landlords would be counter-productive and these figures show how right we were. All they are achieving is driving landlords to leave the market, damage investment and so making it more difficult for tenants to find somewhere suitable to live.

“Whoever is in government following the election needs to completely change the approach and start to support good landlords to encourage them to invest to meet the rising demand for rented housing.”

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Comments

by NW Landlord

7:37 AM, 21st November 2019, About 2 years ago

I’ve had enough 2 sold this year another handful next year it’s becoming just not worth it anymore going to buy a holiday let in Portugal with a view to moving there when kids are grown up

by christine walker

9:14 AM, 21st November 2019, About 2 years ago

The new government should scrap section24 and give landlords a capitol gains tax reduction.This is the only way to save the PRS


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