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.”

Free Ad – Reach millions
Mortgages – From 0.99%
Tax – 9 Tax saving guides
Earn £250 to £2000 part time

mortgageMortgages - Find cheapest. Rates from 0.98%. 1st time buyers, remortgages, self-employed, adverse & CCJ, Landlord buy to let. Compare now

mortgageSell or Let Property FREE on Houseladder 0% no fees. Free property advertising. List 1 to 1000 properties to millions of buyers and tenants. Upgrade to a Premium advert for only £30 and sell or let your property FASTER! Create Ad

make-moneyMake Money - Earn £250 to £2000+ per month part time. Get paid every month for work you do once. Work from home. Flexible hours. Free training. No experience needed. Major UK PLC company. Find out how >>

taxHow To Save Property Tax - Updated Sept 2017 “How To Save Property Tax” is widely regarded as THE tax bible for property investors. The 21st edition has just been published (Sept 2017) and is completely up to date. Read now

Written by: Houseladder