Possession hurdles could curb pre-Budget landlord sales

Possession hurdles on a track leading to a Budget for sale sign outside Parliament, symbolising landlord selling delays.

12:01 AM, 12th October 2026, 43 minutes ago

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Landlord News Lettings & Management

Landlords hoping to sell before the Autumn Budget later this month could find that securing vacant possession complicates their plans, according to Savills.

It says that deciding to sell is one thing, but getting the property ready for a buyer in time is another.

Lucian Cook, the firm’s head of residential research, expects the limited time available and difficulties obtaining vacant possession since Section 21 ended to restrain any rush to sell.

He said: “We expect the spike to be less pronounced this time around.”

His forecast raises a question about how readily landlords can respond to tax uncertainty.

A decision to leave the market does not necessarily translate into a completed sale before the Chancellor delivers the Budget.

Borrowing costs squeeze profits

Savills’ analysis of HMRC figures shows average profits among tax-paying landlords fell 11.2% in 2024/25, while finance costs increased 32%.

Mr Cook expects the financial pressure on landlords to continue as fixed mortgage deals expire.

He said: “That suggests a further fall in taxable profits in 2025-26.”

However, fewer than 40% of private landlords have mortgages, according to Savills’ interpretation of the income tax data.

Mr Cook believes that will help make the potential landlord sell-off more gradual than feared.

Sales figures need context

Savills also says HMRC figures suggest investment property and second home sales dipped slightly in 2025/26.

Its prime landlord survey found that 11% had sold, with more considering selling when market conditions improve.

However, second home disposals are not necessarily landlord exits, and the prime landlord survey does not represent the whole sector.

A slower rate of selling would not, by itself, establish that the supply of homes to let is recovering.

That would also depend on purchases and whether properties remain available to tenants after changing hands.

If you would like to discuss quickly selling your rental property with experts, contact Landlord Sales Agency:

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Possession hurdles could curb pre-Budget landlord sales

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Sales figures need context

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