1 in 10 Landlords plan to exit market in 2016

In a recent survey of 1100 members of The Residential Lettings Association (RLA) found 1 in 10 landlords plan to exit the rental market in 2016.

10% of landlords plan to exit the rental market in 2016 with a further 33% considering not to make future investments. However 46% of landlords are trying to beat the stamp duty increase from the 1st April deadline for the purchase of additional properties.

This could result in a flood of properties to the market for sale if landlords keep to their words which would be result in lower house prices which would help first time buyers.

However with fewer rental properties and increased costs to landlords due to new tax rules, tenants could be worse off with increase rental prices. 45% of landlords said they plan raise rents in 2016.

In July 2015 budget Osborne announced the scrapping of tax tax relief that allowed landlords to offset mortgage interest payments against income tax bills. Then in November an increase in stamp duty of 3% on rental and second properties was announced for introduction in April 2016. Both reducing the return on investment for landlords.

Written by: Houseladder