Financial pressures could force landlords to hike rents or sell up
Up to three-quarters of the UK’s landlords could be forced to sell their rental property due to continued financial pressure and new legislation being introduced by the government, according to MakeUrMove.
The online letting agent said looming hikes in the Bank of England base rate, rising stamp duty for property owners, the tenant fees ban and loss of tax relief on buy-to-let properties have all had a severe impact on landlords.
It suggested this could be especially damaging as 60% of the UK’s landlords only have one property, letting it out as a secondary, rather than primary income.
A significant 75% of landlords said they would have to sell if they were making a loss, breaking even or not making enough profit.
Four in 10 landlords indicated they would be forced to increase rents as a result of the raft of changes.
The average monthly rent in the UK already stands at £1,198, and experts are now predicting a further rent rise of 5.6%, piling additional pressure on tenants across the UK.
MakeUrMove managing director, Alexandra Morris, said: “The result of the rising costs associated with the changing legislative and regulatory environment will either be increased rents or landlords having to sell their properties.
“The alarm bells should be ringing, and this should be a major concern for both homeowners and the government. The government needs to act now to ensure it remains financially viable for landlords to meet their financial obligations.”