A survey of some 2,000 landlords shows that more than four in 10 want recent changes to Capital Gains Tax allowances reversed.
The survey, commissioned by Octane Capital, found that confidence in the sector remains robust, despite the government’s best efforts to reduce the financial returns available to buy to let investors.
In fact, just eight per cent of those surveyed stated that they had reduced the size of their BTL portfolio over the last year.
However, the sentiment survey shows that legislative changes remain the biggest concern for the year ahead, followed by the increasing running costs of BTL such as maintenance and energy bills.
The day to day management also ranked as one of the biggest challenges facing the nation’s landlords, as did the increased cost of borrowing as a result of increasing mortgage rates.
The majority of those surveyed - 60 per cent - are also concerned about still more rises in interest rates.
As a result, just 16 per cent of those surveyed stated that they intend to increase the size of their BTL portfolio over the coming year.
When asked which government legislative change they would most like to see reversed, the recent changes to CGT allowance ranked top. The government plans to reduce the CGT tax-free allowance from £12,300 to £6,000 in April of this year, implementing a further reduction to just £3,000 by 2024.
The ban on Section 21 evictions and required improvements to EPC ratings also ranked as some of the changes landlords would most like to see reversed.
Octane chief executive Jonathan Samuels says: “It appears as though the exodus of landlords from the rental sector has been somewhat over exaggerated with just a small proportion opting to reduce the size of their portfolio in 2022.
“That said, while we’ve seen a degree of stability return following a shambolic mini budget last September, many buy to let investors remain cautious about the year ahead.
“This caution is likely to prevent them from investing further until a greater degree of certainty returns, although we must also tip our hats to the government in this respect, as their consistent attack on the sector remains the number one concern.”
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Another rubbish survey I have no confidence whatsoever left in supplying Property to let and I was a landlord years before the words buy 2 let were ever heard of, our Properties are being confiscated by removal of Section 21 the foundation of all Private Letting do you not get that. The White Paper has no other intention no wonder Polly Neate the anti- LL campaigner said it’s a game changer and Shelter who supply no housing which is very big of them.
Who cares what they do with c/gains tax when we have lost complete control of our property which is now.
What difference is it when you are not allowed to pass it on to your family members. I have spent thousands of Professional investigating schemes they proposed none works a load of quangos tying your Estate up in knots its not for your benefit.
There is no exit Plan allowed yes you can sell and pay 28% c/gains then your Estate pays pays another 40% on the remaining money you got for the Sale now that’s 68% plus all the other costs, notwithstanding all the people you Housed over the years and the punitive paid year on year…
Ah! yes what Confidence is booming you morons.
Well said Michael!
Spot on Michael.
In Wales, the. so-called Welsh government have imposed a mass of new regulations on the PRS.
It is getting to the point where the tenant has all the 'ace cards'.
We have to dump the AST in favour of new contracts, which have totally changed the way that landlords are able to go about their business.
You would honestly think that we no longer have control over our properties.
The CGT reduction and the inevitable fall in property prices, creates the perfect storm for landlords.
It is actually beginning to affect my health now and I would get out tomorrow if I could, but I will just have to hang on in the hope that things get better, so that I can sell up.
I feel your pain Michael.
Well said Michael and John.
The CGT is a light 💡 bulb moment for me… I can now sell the lot and not wait a year between evictions… every cloud ☁️ has a silver lining. The EPC C and s21, oh and s24 are the real concerns and the reasons for my selling. The CGT change is a kind of relief, it sweeps away any barriers I had to evict all at once.
My sentiments, exactly.
Our landlord Association says they have successfully Campaigned a positive charge to THE WHITE PAPER to require them to have Pet Insurance, come on now big deal is that all you got, we wouldn’t deal with another layer of Administration anyhow and would you be the providers of this Insurance?
So the 9 point anti-landlords plan is to completely destroy us. The Tenants can stay for ever in the houses I built or walk away at any time they like obviously as they now do.
I will have to give them the people I housed off the Street a justifiable Reason to Recover my own Property it’s none of their business what I want to do with it. I didn’t need Their Permission when I acquired the Property or get any financial support from anyone, so now they call all the shots, the tail is seriously wagging the dog here.
Totally agree Micheal. We provide a service like many businesses. If our terms of business are not up someone’s liking they are at liberty to not use us. One day people will wake up and realise the problem is the people in government not those trying to solve the problem of choice in the market by investment and financial risk.
Exactly. Tenants don't need a justifiable reason and a court order to get them in the property so why is it required for a landlord to get the out?
We have to many have-nots in society that' the problem. Lots of people can't afford to buy. NIMBIES won't allow new housing to get built. Greedy councils demand too much 'affordable housing' (40%) of all new builds to be provided which restricts projects viability.
I love stats. Just 8% of landlords surveyed reduced their portfolio last year. Conclusion “The exodus has been somewhat over exaggerated”……. That’s because the majority that exited are no longer landlords and thus not surveyed.
It seems to me that most ''surveys'' published on here are no more than figures picked out of the air .
92.45% of statistics are made up by the person quoting them and the remaining 42.35% are just lies.
Absolutely agree. There should be far greater scrutiny of the true validity of these stats and other claims. Publishing poorly structured & researched data eventually reduces trust, not least in the publishers themselves!
Bring back taper relief or do the same as other countries and have zero CGT after X number of years.
Even before Section 24 was invented we paid vast amounts of income tax, SDLT and VAT.
Even before taper relief was abolished we still paid quite a lot of tax throughout our period of ownership.
CGT at 28% is just pure greed.
As Simon says with the reduction of the annual allowance there's no reason to not just sell everything in one go. Even if only a small percentage of landlords do that it's potentially a lot of homeless people.
Wouldn't it be far better to do the same as other countries and have zero CGT after maybe 25 years of ownership? Give us a reason to stay the course.
We have been taxed so much there is now a housing crisis.
Why would new landlords enter the industry when the financial barriers are so great?
Extra 3% SDLT, artificially put into higher rate tax band with Section 24 so loss of Child Benefit, taxed on turnover instead of profit, high mortgage costs, potential fines for accidental oversights, potential non paying tenants and then 28% CGT on the rise in property value that is purely down to inflation. So effectively a percentage of our asset is being stolen from us as punishment for paying vast amounts of tax for so many years.
Try 6% SDLT in Scotland now!
As usual Jo, you have said it all. If "they" want landlords to allow tenants to stay for many years in the same house, why not incentivise us to keep the same property for years without taxing the rise in value due to inflation.
Agree CGT is just a tax grab but for landlords it's less of a worry than a lot of other things just now!! Just remortgaged one of mine, going to have to put rents up at least 10% this year.
We're doomed!
Aka Pte Frazier from Dads Army 😂 a classic…. But we may well be doomed 💣😬
Apparently BTL mortgage rates have come down since the mini budget created a massive hike in rates, but if you look at them more carefully, rates may have stabilized around 5-5.5%, but the fees for a 2 or 5 year fix have gone wild! £6k,-£12k set up fees on a £200k mortgage?? That takes the rates to near 6% at best!
John. So sorry to hear that it’s affecting me the same way and I would get out tomorrow if I could and now sorry for ever been a landlord after 43 years, the taxes I have paid, the Property I supplied, Sorry my labour and the years of dedication and the thousands of Tenants I put through my hands. What for I always earned living anyway so who’s benefit was it for.
Anyway John good side out I wish you well.
Sadly I'll have to put rents up by 10 percent this year. Mortgage rates have gone up month on month. I can't sell due to CGT. I'm selling one this year but next year CGT goes to 3 measly percent so won't be able to sell anymore.
Unfortunately this is all part of the Govs strategy to lock us in for the inevitable homelessness crisis now developing. Next they will add eviction bans once the situation becomes critical..
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