Exodus of private landlords ‘exaggerated’ – claim

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