Landlords split on selling property amid rising costs

Landlords in the UK have different plans for their portfolios in the next 12 months, with two-thirds (66%) of landlords not wanting to sell any of their property, research reveals.

The findings from Landbay also show that one-third (34%) are considering selling some or all of their property – but just 10% of these landlords will sell up entirely.

Their reasons for selling are the rising costs of property investment, such as higher interest rates and taxation, and the lower capital gains tax.

However, some landlords are also looking to buy more property, either to expand their portfolios or to restructure them.

‘One in three landlords are thinking of selling’

Landbay’s business development director, Rob Stanton, said: “Our survey found that one in three landlords are thinking of selling some of their property but not all of it.

“They intend to stay in the market but are trimming their portfolios and some are reorganising as they both buy and sell property.

“Higher costs are typically why landlords want to sell, not just interest rates but taxation is also an issue for some.”

He adds: “On the positive side, two-thirds of landlords have no intention of selling and 36% of those are looking to buy property.

“The market is changing and landlords who see opportunities are taking them while others are rethinking their strategy.”

36% of landlords who do not intend to sell

According to the lender’s survey, 36% of landlords who do not intend to sell are planning to buy more property in the next year, while 90% of landlords who are thinking of selling only want to sell some of their property.

The survey also reveals a regional variation in landlords’ intentions.

In London, half of the landlords want to sell some property, while in the South of England, 29% of landlords have the same intention.

In the North and the Midlands, the percentages are lower, at 25% and 22% respectively.