Landlord sale could put half a million homes on market
Landlords list a number of reasons for selling up (pic: Terry Murden)
One in four landlords plan to sell at least one property this year, potentially putting over half a million homes up for sale, according to new research.
A survey of 800 landlords revealed that with uncertain market conditions, fourt- fifths (82%) of landlords are not planning on buying any more properties in 2020.
Just one tenth (13%) said they would buy another property this year, while a third (35%) also reported a decrease in their rental yield in 2019, according to the study by landlord insurance provider Simply Business.
The top reasons landlords gave for wanting to sell are tax increases, rising rental costs, cashing in on their investment, economic instability and slowing house price growth (4%). This comes after a third also reported a decrease in their rental yield in 2019.
Looking ahead to this year, more than a quarter (27%) of landlords expect to see a further decrease in their rental yield in 2020.
Bea Montoya, chief operating officer at Simply Business commented: “Landlords around the country are telling us that government reforms, tax increases, and rising rental costs are forcing them to put their investments up for sale.
“Any landlord looking to sell up should make sure they understand the complexities surrounding buy-to-let sales, particularly if the property is occupied.
“Any tenants should be made aware of plans to sell as early as possible, and given reassurance their tenancy still stands.
“When it comes to selling, landlords need to understand any tax implications involved, such as capital gains tax. If the property is sold for more than it was paid for, there will be a capital gains tax liability.”
The survey was based on responses from 799 landlords across the UK, conducted in November 2019.
The number of landlords in the UK totals 2,594,720 – 26% of this is 674,627, meaning at least 674,627 properties could be put up for sale. (Source: UK Treasury).