Corporate landlords replacing private buy to let landlords
1 year ago | 9 comments
Landlords are selling up because of legislation and tax changes
9:10 AM, 15th January 2025, 1 year ago
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Most landlords planning to exit the private rented sector (PRS) within the next two years are driven by concerns over changing regulations and taxation, a report reveals.
The findings from The Deposit Protection Service (DPS) show that 47% of landlords are considering selling some or all of their properties.
And 89% of these landlords identified legislative or regulatory changes as a key factor in their decision, a 4% increase since May.
‘Landlords planning to exit the PRS’
The managing director at The DPS, Matt Trevett, 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.”
He added: “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.”
Private Rented Sector Review
The firm’s ‘Private Rented Sector Review’ surveyed more than 1,200 landlords.
It found that the proposed reforms to Section 21 ‘no-fault’ evictions and the Renters’ Rights Bill were the most influential factors for 94% and 91% of respondents, respectively.
Capital gains tax changes also heavily influenced landlords, with 91% highlighting their impact.
The report found that 24% of landlords plan to sell all their properties in the next two years, while 23% intend to sell some.
Landlords who intend to sell
The survey also found that 30% of landlords who said they intend to sell said they were worried about falling property values had influenced their decision.
The cost of BTL mortgages is a concern for 46% of respondents.
Almost two thirds (61%) of respondents 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.
Tags:
Buy to let, housing crisis, Landlord Tax, Property market, Rental market, renters rights bill, section 21, UK Landlords
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Member Since March 2023 - Comments: 1506
9:54 AM, 15th January 2025, About 1 year ago
It is true that a ‘lot’ of landlords will sell (like me), but not until the current tenants have left. I expect a few landlords will sell the lot issuing S21s now but most will wait till the property is empty. I suspect those only owing 1 or 2 rental with non paying tenants will get rid first as they must be feeling the pain more than us portfolio landlords (or are they ?)
Member Since December 2023 - Comments: 1575
10:31 AM, 15th January 2025, About 1 year ago
Landlords started leaving the sector long before the the full horrors of the RRB were known.
Nobody wants to take over the tenancies when landlords die. Tenants will lose their homes when landlords realise their days are numbered or when the benefactors inherit the properties. But the will lose their homes.
Member Since March 2023 - Comments: 1506
10:53 AM, 15th January 2025, About 1 year ago
Reply to the comment left by Cider Drinker at 15/01/2025 – 10:31
Yes, I have promised my long term tenants that they can stay as long as they like as long as they pay the rent.
However, my wife has said that if I pop my cloggs first she will evict them all and sell up.
Member Since July 2013 - Comments: 97
11:17 AM, 15th January 2025, About 1 year ago
Mine as well.
Member Since May 2014 - Comments: 616
11:24 AM, 15th January 2025, About 1 year ago
As soon as my good tenants leave I am out.
Member Since December 2020 - Comments: 12
5:56 PM, 15th January 2025, About 1 year ago
Reply to the comment left by Jack Craven at 15/01/2025 – 11:17
Same
Member Since October 2024 - Comments: 11
6:31 PM, 15th January 2025, About 1 year ago
Ditto
Member Since January 2025 - Comments: 14
7:19 AM, 16th January 2025, About 1 year ago
Same..
I am being taxed on rent that I have not had, only being able to claim 20% tax relief on expenses, such as mortgage interest payment, leasehold costs and repairs and maintenance is killing me..
I make virtually nothing on the properties which are in my personal name..
Selling up, I can’t sustain this business anymore.
The government need to take a long hard look at the situation they have created.. let’s hope they can house all the tenants who, for no fault of their own, will be made to vacate.
Member Since March 2023 - Comments: 1506
8:52 AM, 16th January 2025, About 1 year ago
The rent you haven’t had can be knocked of your profits – it has to be treated as a bad debt, but you may have to wait some time for this – in my case I claim when I issue a CCJ (ask your accountant)
Member Since February 2016 - Comments: 1056
9:21 AM, 16th January 2025, About 1 year ago
Reply to the comment left by GlanACC at 16/01/2025 – 08:52I thought Karen was referring to rent she had never actually received because it went to pay the mortgage, rather than the tenant defaulting on rental payments. Perhaps she could clarify.