Home » Uncategorised »
BTL Landlords Offload Almost 4,000 Properties a Month
This article is an external press release originally published on the Landlord News website, which has now been migrated to the Just Landlords blog.
Landlords are selling in the region of 4,000 buy-to-let properties, monthly, resulting in the first recorded drop in the number of rental properties in 18 years, recent figures show.
Official data from the Ministry of Housing report reveals that around 3,800 buy-to-let properties are being sold by landlords each month, as mortgage interest relief changes continue to have a negative effect on the market.
A number of other tax and regulatory changes have also hit landlords ‘profit over the past couple of years, including the abolishment of the ‘wear and tear’ allowance and the introduction of the 3% stamp duty surcharge.
Chief Executive of letting agent trade body, ARLA Propertymark, commented: “The barrage of legislative changes landlords has 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 costlier 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%.”
