One in ten landlords plan to exit the sector following spring statement
By |Published On: 22nd March 2023|

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One in ten landlords plan to exit the sector following spring statement

By |Published On: 22nd March 2023|

This article is an external press release originally published on the Landlord News website, which has now been migrated to the Just Landlords blog.

Following a disappointing spring statement for the buy-to-let sector, lettings and estate agent Benham and Reeves has found that not only were half disappointed that a reintroduction of mortgage tax relief didn’t come to fruition, but one in ten now plan to exit the sector as a result. 

The survey of UK landlords commissioned by Benham and Reeves found that 49% were disappointed that whisperings of a potential reintroduction of mortgage relief were unfortunately just that and the Government didn’t decide to u-turn on the subject in last week’s spring statement. 

It was hoped that the Government would throw the buy-to-let sector a bone following a string of legislative changes that have caused many to exit the sector and 71% of those surveyed by Benham and Reeves stated that they would have also liked to have seen some other form of incentive announced.

12% of landlords also revealed that they had planned to increase the size of their portfolio but will not refrain, while a further 6% will still push on with their plans to expand their investment.

However, 10% stated that they will now reduce the size of their portfolio due to a lack of support from the Government, with an additional 8% already having planned to do so. 

What’s more, one in ten also stated that they plan to exit the sector due to a lack of government incentives to remain, while 7%, again, had already planned to exit prior to the spring statement. 

So where are those who exit planning to place their money? 

Stocks and shares ranked as the most prominent buy-to-let alternative, with premium bonds, bonds, commodities and classic cars also rank amongst the most popular alternative investment avenues.

Marc von Grundherr, Director of Benham and Reeves, comments: “The Government has been waging war on buy-to-let investors for quite some time now and many within the sector were hoping that the spring statement would finally see them thrown a sugar lump, rather than shown the stick. 

“Unfortunately this failed to materialise, but while disappointing, the majority of landlords remain unfazed and, let’s face it, unsurprised. Although they have no plans to increase the size of their portfolio, they also won’t be reducing it.

“However, one in ten have had enough and with the Government failing to incentivise them in any way, they are reducing their portfolios and exiting the sector. With some 2.74m landlords currently operating within the sector with around two properties per landlord, that’s a potential reduction of over half a million rental homes.

“This is, of course, bad news for the nation’s tenants, who will be left with even less choice when it comes to quality accommodation and an even higher commitment when it comes to the cost of renting.”

About the Author: Em Morley (she/they)

Em is the Content Marketing Manager for Just Landlords, with over five years of experience writing for insurance and property websites. Together with the knowledge and expertise of the Just Landlords underwriting team, Em aims to provide those in the property industry with helpful resources. When she’s not at her computer researching and writing property and insurance guides, you’ll find her exploring the British countryside, searching for geocaches.

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