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TODAY'S OTHER NEWS

BTL landlords offload almost 4,000 properties a month

Landlords are selling close to 4,000 buy-to-let properties a month resulting in the first recorded fall in the number of rental properties in 18 years, fresh figures show.

Official data from the Ministry of Housing report reveals that about 3,800 buy-to-let properties are being sold by landlords each month, as mortgage interest relief changes continue to have a negative impact on the market.

A number of other tax and regulatory changes have also hit landlords’ profits over the past couple of years, including the scrapping of the ‘wear and tear’ allowance and the introduction of the 3% stamp duty surcharge.

David Cox, chief executive of letting agent trade body ARLA Propertymark, said: “The barrage of legislative changes landlords have faced over the past few years has meant the buy-to-let market is becoming increasingly unattractive to investors.

“Landlords are either hiking rents for tenants or choosing to exit the market altogether to avoid facing the increased costs incurred.” 

The “exodus of landlords” is causing a chronic shortage of available properties to rent in some parts of the country, particularly in London.

Jatin Ondhia, CEO of Shojin Property Partners, commented: “As a result of the government’s increase in stamp duty, it is now much more costly to acquire a buy-to-let property. A £250,000 investment property will incur stamp duty of £10,000 compared to £2,500 for an owner occupier.

“Many landlords have seen their profits eroded by the increased burden of taxation and regulation. They are also facing poor buy-to-let yields especially in London for example, where they are between just 2-3%, while nationwide the average yields are between 6-8%.”

Poll: Are thinking about exiting the BTL market?

PLACE YOUR VOTE BELOW

  •  G romit

    How can the author publish two articles on the same day one titled "Landlords maintain BTL ‘portfolio sizes’" and the other "BTL landlords offload almost 4,000 properties a month"?

    Is the author even thinking about what he's writing let alone doing any research?

  • icon

    i'm not selling, i'm buying, rents are going up, more tenants out there than properties to rent, has to be good news for the landlord.

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    • A G
    • 28 August 2018 09:30 AM

    Hi Romit - agree, found that confusing. Not read second one yet. But titles certainly contradict each other.

    Regards selling up - personally I'm looking to expand, though stamp is slowing me down, its not preventative. Its a long term buy and hold for me, the rents are still good. We're seeing new landlords in our agency too. Also, still seeing property in student areas selling for decent prices, 99% sure will see these to let at some point.

    Can see why this might be different in London - stamp, a lot more upfront cost.

    Hmmmmm..interesting times.

  • David Lester

    Not intending buying any more until, longer tenancies and Section 21 are resolved.

  • icon

    I read these articles for acurate information not stories aimed at glamourising/false news.. I read "The Sun" for that when I'm bored. Try making it a useful read otherwise I might as well not bother.

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