Landlords look to sell and not buy – survey

Landlords look to sell and not buy – survey

0:02 AM, 21st August 2023, About 9 months ago

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Private landlords are twice as likely to sell a property than they are to buy – fuelling the country’s ongoing housing crisis, a survey has found.

The findings show that in the second quarter of this year, more than one in 10 (12%) landlords in England and Wales opted to sell their properties.

Just 5% of landlords said they had invested.

The study, commissioned by the National Residential Landlords Association (NRLA), also highlights that more than a third (37%) of landlords are looking to sell over the coming year.

That’s an all-time high figure of portfolio landlords looking at downsizing – and just 8% say they will invest.

‘Lack of assistance for renters and their landlords is clear’

The NRLA’s chief executive, Ben Beadle, said: “Whilst the Chancellor has developed a mortgage charter to help homeowners, the lack of assistance for renters and their landlords is clear for all to see.

“Households renting privately are facing the full force of the supply crisis, and change is needed now to prevent the situation from worsening over the next 12 months.”

He added: “The Government must reverse its damaging tax hikes on the sector.

“It is frankly absurd to have a tax system that punishes landlords for providing the homes tenants so desperately need whilst favouring holiday lets.”

Rented property sell-off by landlords

The ongoing rented property sell-off by landlords comes as the demand from tenants remains high.

The survey found that two-thirds (67%) of landlords report heightened tenant demand during the second quarter of the year – another historic peak.

With escalating mortgage costs and uncertainty over proposed reforms for the Private Rented Sector (PRS), the NRLA cautions that the supply crisis will only worsen unless swift governmental intervention is taken.

The association is urging ministers to scrap its tax changes which have discouraged landlords from investing in much-needed private rented accommodation.

Specifically, the NRLA says that the 3% stamp duty levy imposed on homes purchased for rental purposes and the limitation on mortgage interest relief should be reconsidered.

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