20% of landlords plan on selling up

The National Landlords Association’s (NLA) latest research shows that 20% of its members plan to reduce the number of properties in their portfolio in the next year – the highest level of intended property sales in 10 years.

The NLA believes this is due to recent tax changes, and has created a series of videos to assess and explain the impact of these changes on landlords and tenants.

The four videos contain research, conducted by Capital Economics for the NLA, which shows that landlords and tenants will pay more than their fair share in tax as a result of changes made by the Government to curb buy-to-let activity in the private rented sector (PRS). These include:

  • The withdrawal of mortgage interest relief for higher and additional rate tax payers
  • A three per cent surcharge on purchases of additional property
  • The banning of upfront letting fees for tenants.

The first video, ‘Taxing homes’, provides an overview of how the sector is likely to look as the policies come into effect. The second video, ‘Hitting landlords hardest’, compares the tax bills of four different people all earning £50,000 through various means. It shows that landlords are paying far more tax than those earning only a wage or salary.

‘What does this mean for landlords?’ looks at the PRS market from a landlord’s perspective and how landlords could respond to the changes. The final video, ‘What does this mean for households?’ shows how tenants may end up paying higher rents and have fewer rental properties to choose from.

Richard Lambert, CEO of the National Landlords Association, said:

“The videos were created to explain simply some quite complex policies, for both landlords and their tenants. They, along with our own research, show that the Government needs to look at the impact these policies will have on the PRS.

“More and more people are relying on this sector for a home, so it is vital that landlords not only provide a high standard of accommodation, but are incentivised to do so by the prospects of a reasonable return on investment.

“It is our view that these policies are undermining the viability of many landlords’ businesses and removing the incentives to invest in residential property for business purposes.”

Shared by Suzanne Muth suzanne.muth@landlords.org.uk

EAN Content

Content shared by this account is either news shared free by third parties or sponsored (paid for) content from third parties. Please be advised that links to third party websites are not endorsed by Estate Agent Networking - Please do your own research before committing to any third party business promoted on our website.

You May Also Enjoy

Marketing

How to Generate more Estate Agency Property Leads

There is said to be over 50,000 estate / letting / auction agents across the UK, a figure that has remained relatively steady over the last few years. With over 7,000 in London alone, the industry of selling and renting property is undoubtedly well serviced with no shortage of options for consumers to chose from.…
Read More
Breaking News

UK’s Housing Crisis Deepens as 1.4 Million Homes Sit Unbuilt

Cornerstone Tax reveals that 19% of tenants have been forced to move five times in less than five years due to landlords exiting the market David Hannah, Group Chairman of Cornerstone Tax, urges the government to focus on addressing the wider housing affordability crisis by incentivising landlords The government’s plan to develop 12 new towns…
Read More
Rightmove logo
Breaking News

Rightmove House Price Index: Price growth slows as stamp duty deadline looms, but activity remains robust

The average price of property coming to market for sale rises by 0.5% (+£1,805) this month to £367,994, a muted price rise for this time of year as new sellers lower price expectations, due to the looming stamp duty deadline and high competition: The number of available homes for sale is at a 10-year high,…
Read More
Marketing

Attracting the Right Buyers: Digital Strategies for Real Estate Agencies

Okay, let’s talk approximately how real property companies have promoted houses in recent times. It’s not as adored as it used to be! They cannot just place up a signal and expect human beings to be exposed. We stay in a virtual world, and that means they want to use smart online strategies to locate…
Read More
Breaking News

Rise in no fault evictions

No fault evictions have risen according to the latest data published by the Ministry of Justice. Property disputes lawyer says “some landlords are unwilling to wait for the new Renters’ Rights legislation and are choosing to leave the market” Landlords can apply for an accelerated possession order if the tenants have not left by the…
Read More
Love or Hate Rightmove
Breaking News

Rightmove Weekly Mortgage Rates – 14/02/25

Rightmove’s mortgage expert Matt Smith says: “It’s another week of average rate drops, and the response from the market since the Bank Rate cut has been positive. We hope to now see a sustained period of mortgage rates trickling downwards to lead us through the Spring selling season.” On the first sub-4% mortgage rate Matt says: “The…
Read More