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Over a third of landlords plan to sell in 2020

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The rise of onerous regulations and the restriction of tax efficiencies has led many to consider downsizing their property portfolio
Over a third of landlords plan to sell in 2020

Over a third of UK property investors are looking to sell properties in 2020 due to higher taxes and greater regulation, according to research by Accumulate Capital.

The property development firm found that 37% of landlords are planning on selling one or more of the residential properties they own this year.

Of those planning to sell, 61% said this was in response to the greater regulation and higher taxes they face as buy-to-let investors.

Too much red tape

Over seven in 10 (72%) property investors think current taxes and regulations are unfairly weighted against landlords.

Over three fifths (63%) are not considering expanding their portfolio because of reforms to the private rented sector (PRS) that will be introduced from 6th April 2020. These include mortgage interest tax relief reforms and changes to private residence relief.

The majority (69%) said the costs of managing their property portfolios had increased “considerably” over the last five years.

Over half (54%) added that they are prepared to sell properties if further PRS regulation is introduced in the 2020 Budget, scheduled for 11th March.

Paul Howells, CEO of Accumulate Capital, said: “Property investors are clearly frustrated by how much red tape there now is within the private rental sector and buy-to-let market. Yes, there is a need for regulatory measures to protect the interests of all parties involved in the property market, but as our research shows, some landlords feel the current system is unfairly weighted against them.

“What we might see as a result, is investors selling properties and downsizing their portfolios.”

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