Landlords selling up as buy-to-let tax changes begin to hit

Evidence may be emerging of landlords selling up as their profits dwindle.

In April, the phasing out of relief on mortgage interest was introduced.

A survey by insurer Cover4LetProperty found that 11% of tenants have had to move as their landlord had sold up.

This was the first time this has been quoted in the annual survey as a reason for tenants moving.

Overall, almost half (49%) of 100 tenants surveyed said they have moved in the past five years, with 27% citing the cost or wanting to live in a different area.

The number of tenants complaining about the condition of the property declined from 19% in last year’s survey to 14%.

Another 8% wanted more space, while 5% did so because they were not allowed pets or did not get on with the neighbours.

Just 3% blamed poor relations with their landlord, down 3% from last year.

Richard Burgess, director at Cover4LetProperty, said: “Our survey this time highlighted two standout results for us.

“Firstly, that tenants moving due to bad property conditions has decreased, suggesting that let properties are being improved and invested in.

“For the first time, we see that tenants are moving because landlords are selling up.

“While this could be simply due to landlords realising profits in their property, it could also be that increased legislation and fees are making it much more difficult for landlords to make a sustainable profit. Only time will tell if this trend continues.”

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Written by: Houseladder