Landlords across the UK are feeling the pinch, and it's not just from the cold weather!
The Deposit Protection Service (DPS) recently surveyed over 1,200 landlords, revealing that changing regulations and taxes are the top reasons for selling their properties. With 47% considering selling some or all of their portfolio, it's clear that the private rental sector is in a state of flux.
A whopping 89% of those eyeing a sale cited legislative changes as a major factor, up from previous months. The big culprits? Reforms to Section 21 evictions, the Renters’ Rights Bill, and capital gains tax. These changes are making landlords rethink their investment strategies, with many worried about reduced returns after tax.
Interestingly, while concerns over property values have increased slightly, the fear of rising mortgage costs is dwindling. Only 46% of landlords now see mortgage costs as a major concern, a significant drop from earlier surveys.
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Matt Trevett, managing director at The DPS, highlighted that while the number of landlords planning to exit the private rental sector remains stable, the shortage of rental properties is a growing issue. Legislative and tax changes are increasingly influencing landlords' decisions, alongside rising maintenance and mortgage costs.
So, what's the takeaway? Landlords are navigating a tricky landscape, balancing regulatory changes with financial pressures. As they decide whether to hold on or sell up, the rental market remains a hot topic for property professionals across the UK.
Want to hear more? Join Mal on the Property AI Report Podcast each week!
Access from your preferred podcast provider by clicking here
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