New tax rules resulting in landlords to sell 500,000 properties this year according to trade body the National Landlords Association (NLA)
With the 3% stamp duty increase in April and new tax rules where a landlord will be unable to offset mortgage interest costs against income, many landlords are offloading properties in a mass sell due to unaffordability of rental rental properties.
And as a result, says NLA CEO Richard Lambert, landlords’ confidence in buy-to-let (BTL) has collapsed to an all-time low.
“Two speeches from the Chancellor in 2015 have led to a crisis in confidence greater than when all but a few BTL products were immediately withdrawn from the market following the 2007 financial crash,” he says.
Some larger investors have already started selling off properties – notably, the country’s biggest buy-to-let landlords, Fergus and Judith Wilson, who are offloading more than 1,000 houses and flats.
“Common sense must prevail,” Mr Wilson said.
The NLA has predicted that landlords will sell 500,000 properties in the next 12 months and then another 100,000 every year until 2021. This will shrink the number of properties available to rent at a time when more properties are required.