Research from the National Landlords Associations predicts sell off of 500,000 buy to let properties.
Landlords confidence is at a record low since the recession started in 2008 due to double tax hikes with the increase of stamp duty in April by 3% and the removal of tax relief on mortgage interest payments starting in 2017 with full implementation complete by 2021.
Many landlords will be paying tax on property investments which may not be making a profit and even be in a loss. It has been found that 91% of regions across the UK will experience losses for buy to let investments.
The Chancellor George Osborne said the policies were aimed at “creating a level playing field” in Britain’s under-supplied property market.
However investors with with more than 15 properties will be exempt with the government hitting small landlords. Some think that landlords will simple raise the cost of rents making the situation for tenants worse.