One in five landlords plan to sell their rental property
Nearly a million landlords plan to review their buy-to-let portfolios over the next two years, according to Nottingham Building Society.
And the mutual found that those planning to sell outnumber those planning to buy more properties.
Its study revealed that 20% plan to sell all or some of their portfolio, whilst 16% aim to buy more properties over the next two years.
Too much red tape
Landlords blamed red tape for wanting to sell with more than half citing regulatory issues as the reason they want to exit the market.
A quarter (24%) say the end of tax relief on buy-to-let mortgages is driving them to sell.
Those who want to buy a rental property point to the ability to earn a good income from buy-to-let as well as rising property prices.
Six in 10 said that low interest rates for savings mean property is a better investment.
The Nottingham also found that millions who have never been landlords plan to buy a property to let over the next five years. Some 11% of people surveyed with mortgages on their homes or who own them outright are thinking of becoming landlords in the next five years.
Denise Wells, head of mortgage operations at The Nottingham, said: “Our research suggests sellers currently outnumber buyers in the buy-to-let market with regulatory issues and tax changes among the reasons persuading landlords to pull out of the market.
“However, it remains the case that there are potentially strong returns to be earned in the buy-to-let
market and we continue to see landlords buying rental properties whilst our research indicates that
many more potential landlords are considering going into the market too.”