Exodus of private landlords ‘exaggerated’ – claim

Exodus of private landlords ‘exaggerated’ – claim

10:06 AM, 10th January 2023, About 2 months ago 32

Text Size

A survey has revealed that landlord confidence is ‘robust’, though many worry about the government’s meddling in the private rented sector (PRS) and want changes to capital gains tax allowances reversed.

The findings from property lending experts, Octane Capital, also highlight that landlords are concerned about the increasing day to day cost of their buy-to-let investment driven by the cost-of-living crisis.

The survey of 2,000 landlords also found just 8% of investors had reduced the size of their BTL portfolio over the last year.

‘The exodus of landlords from the rental sector’

Jonathan Samuels, the chief executive of Octane Capital, said: “It appears as though the exodus of landlords from the rental sector has been somewhat over exaggerated with just a small proportion opting to reduce the size of their portfolio in 2022.

“That said, while we’ve seen a degree of stability return following a shambolic mini-Budget last September, many buy-to-let investors remain cautious about the year ahead.”

He added: “This caution is likely to prevent them from investing further until a greater degree of certainty returns, although we must also tip our hats to the government in this respect, as their consistent attack on the sector remains the number one concern.”

Capital gains tax allowance changes reversed

Along with 41% of landlords who would like to see capital gains tax allowance changes reversed, 60% don’t believe that interest rate hikes have peaked.

Landlords also don’t believe the market will be more settled during 2023 and most say their biggest concern is the government’s legislative interventions.

Many also worry about the increasing running costs of buy-to-let investment such as energy bills and maintenance.

The day-to-day management also ranked as one of the biggest challenges facing landlords – and the increased cost of borrowing.

Increasing the size of their buy-to-let portfolio

As a result of their concerns, just 16% of landlords intend to increase the size of their buy-to-let portfolio over the coming year.

And when asked which government legislative change they would most like to see reversed, the recent changes to capital gains tax allowance ranked top.

The government plans to reduce the CGT tax-free allowance from £12,300 to £6,000 in April, with a further reduction to just £3,000 by 2024.

The ban on Section 21 evictions and potential improvements to EPC ratings also ranked highly among the changes landlords would most like to see reversed

Share This Article



18:58 PM, 10th January 2023, About 2 months ago

Reply to the comment left by DSR at 10/01/2023 - 17:47
Sold 2 bought 1 in past two years within the portfolio. Not planning on selling any more as maximising on rentals before potential labour government brings in even more regs and taxes on unearned income and gets rid of 20% tax credit. Will just bear the increase in CGT to 40% as that has been factored in via gain in rental income for the next 2/3 years vs loss in extra 12% tax to pay across portfolio at expected CGT 40% rate

hazza hazza

19:10 PM, 10th January 2023, About 2 months ago

Interviewing just current landlords will obviously skew the results, need to include those who are no longer landlords after selling all their priorities last year.


19:18 PM, 10th January 2023, About 2 months ago

Sold 4 a few to go 😂😂😂😂
Slowly does it .


9:03 AM, 13th January 2023, About 2 months ago

I had a house in my portfolio that 4 years ago I was letting for £1k a month to a lovely long term tenant. When she moved I freshened it up and relet it for £1550pcm. 18 months ago I relet it again for £1750 and 6 months ago I raised it to £1800 mid tenancy. The £1800pcm tenants just bought a house and so I advertised it at £2000 a month. In the first few days I got 29 enquiries. However, thanks to s24, borrowing rates tripling, pending EPC requirement changes, agonising experience with a s21 on another property for the last 11months so far, the govt riding roughshod over the terms of our contracts during Covid, ULEZ expansion, abolition of s21 and all the other reform pains coming I have declined all potential tenants and the house is now on the market.

I find it staggering that what used to work ok or me at £1000pcm is now a terrible proposition at £2000pcm but doing the sums, it is.

I have sold 3 houses since 2016. Now the CGT allowance has been all but wiped out, there is no compelling reason to spread the sale of my next 8 houses over many tax years, so I intend to do them in quick succession. Having been a landlord for 27 years, I have never felt so motivated to stop being one. No survey asked me.

Rebecca Elliott

10:24 AM, 13th January 2023, About 2 months ago

Had 4 and the total profit from those is now less than the landlord above is getting for one. I won't put my rents up just to make more profit because the cost of losing a tenant and finding another outweighs accepting a regular, affordable, rent. I sold one this year and will be offloading the others gradually. Small, socially conscious landlords being squeezed out.

Rebecca Elliott

10:43 AM, 13th January 2023, About 2 months ago

Reply to the comment left by Crouchender at 10/01/2023 - 18:58
This Government's policies have made being a landlord much less profitable and much more demanding with the increased costs generally being passed on to tenants thus contributing to generally poorer standards of living for those in the private rented sector. I have avoided passing on those costs as far as possible thus my properties make very little for the work that is involved. There is, of course, the longer term capital gain but with this Government's plans to lower the CGT allowance to next to nothing it seems I am stuffed. I don't think we know what a Labour, or any other, Govermment would do so I'll not judge ahead of time but, at the moment, my plans are to sell because this Government appears to think we are all ruthless and have millions.


10:36 AM, 14th January 2023, About 2 months ago

Reply to the comment left by DSR at 10/01/2023 - 17:47
I had 11, been selling as tenants left, now down to 3. They've been with me since 2012 and 2015, no rent increase. One is now married and supposedly house-hunting, but finding it hard to find what they want, so I expect he'll go at some point. The other two are showing no signs of wanting to go anywhere, and I expect if they did look around they'd find things getting more expensive. They're good lads and I don’t want to evict them or put the rent up (I couldn't anyway as I'm in Scotland) but I'm increasingly worried by the way our rights are being eroded.


10:42 AM, 14th January 2023, About 2 months ago

Could it be that 41% of respondents want the capital gains tax allowance changes reversed because they are considering selling up 🤔

I've sold 1 and currently plan to sell the other 3 over the next 4 years (or sooner if any tenants vacate).

Paul Essex

22:50 PM, 14th January 2023, About 2 months ago

I am another group which I fear is also large, those with good tenants now, who will probably not re let once the properties become vacant. So despite not featuring in anyone's survey I know of at least two others locally who are feeling the same.

Pixie Props

0:36 AM, 15th January 2023, About 2 months ago

Sold 6, one to go after April 5th.
To much interference in my business to continue.
I was renting really smart homes at well below the average.
Looks like I will catch a last cuff on the head from governments new taxed 50% CGT.

Leave Comments

In order to post comments you will need to Sign In or Sign Up for a FREE Membership


Don't have an account? Sign Up

Landlord Tax Planning Book Now