UK landlords prepare to sell due to tax increases and reforms
A quarter of landlords are planning to exit the market this year, citing tax increases and government reforms as the main driving factors behind the decision to sell, a new survey has found.
The survey of UK landlords found that 26 per cent were preparing to sell at least one property this year, partly due to government reform such as changes to house in multiple occupation licensing and the banning of admin fees.
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Landlords also said that rising rental costs, the desire to cash in on their investment, economic instability and slowing house price growth had also prompted their decision to sell up.
The research by Simply Business, which surveyed 800 landlords, found that 82 per cent were not planning to buy new properties this year, and just 13 per cent said they would expand their portfolio in 2020.
Meanwhile, a third of landlords reported a decrease in their rental yield last year, with a quarter expecting to see a further deterioration.
Simply Business chief operating officer Bea Montoya said: “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.
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“The tax increasing imposed by the government are proving counter productive for landlords, while ongoing political and economic uncertainty hasn’t been providing landlords with the confidence they need to stay in the market.
“But selling a buy-to-let is a big decision, especially if you’re selling more than one.”