Proportion of London landlords selling up quadruples in last 6 months

Proportion of London landlords selling up quadruples in last 6 months

According to new research from the National Landlords Association (NLA), the proportion of landlords in central London who intend to sell property has quadrupled since last year’s Budget.

Just 4% of landlords in central London had plans to sell property when surveyed before last year’s Budget. However, the figure rose to 19%, when surveyed in January this year.

The 15% increase in intention to sell property is the highest witnessed across the UK over the last six months (see full breakdown below for regional comparisons).

Landlords with property in the North East have seen the smallest increase compared to other regions of the UK, rising from 17% in June to 24% in January - (7% rise).

The restriction to mortgage interest relief for individual residential landlords – announced during last year’s Summer Budget – will leave many landlords worse off, forcing some basic rate tax payers into a higher tax bracket and leaving higher and additional-rate payers with considerably bigger tax bills.

The NLA has labelled the changes the Turnover Tax, because landlords’ tax will be calculated on the rental income they earn, rather than their profits


Full regional breakdown

Region

Intention to sell  

July 2015

(before Budget)

Intention to sell

Jan 2016

% Difference

London (Central)

4%

19%

+15%

South West

6%

              20%                           20%

+14%

East Midlands

15%

28%

+13%

Wales

10%

23%

+13%

North West

9%

22%

+13%

London (Outer)

8%

21%

+13%

South East

7%

20%

+13%

East of England

5%

18%

+13%

Scotland

9%

              19%                           19%

+10%

West Midlands

10%

19%

+9%

Yorkshire

13%

22%

+9%

North East

17%

24%

+7%

UK average

7%

19%

+12%

 

Richard Lambert, Chief Executive Officer of the NLA, said: “Local property markets vary greatly across the United Kingdom, but we are seeing a loss of confidence across the board as many landlords realise they won’t be able to remain in the market.

If landlords follow through with their intentions over the coming months this could lead to a massive sale of property, as we have previously warned. However, this may not be a straightforward process, especially for those with stock in low demand areas.

We urge those considering selling up to think about when they will need to do so, and to plan ahead now in order to minimise the risk of losing money as a result of a failure to sell”.

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Scott Garnet 06 Nov 2017

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richardrawlings
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What has not been mentioned here is the effect of not only higher interest payments, but also that these payments are less likely to be offsettable as a business cost due to the scaling back of mortgage...

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Kelvin Lloyd 09 Oct 2017

IT is up, to the Planners. If they will only give permission for bungalows on certain (suitable) sites, they will be built.

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maggie swift 09 Oct 2017

It's just the beginning of the shocking rise.

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I have recently read that the bungalows can provide social housing for elderly residents in London.

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Its nonsense articles such as this that make it harder to get clients to realise just how difficult the market is out there. When you see Rightmove and there are more 'price reduced' then 'new' most days...

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Tom Allen
Tom Allen 20 Sep 2017

Absolutely agree with you!

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A sharp correction would be a less dramatic expression to use. That is already underway in certain sectors in Reading where I practice as Chartered Surveyor

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