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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Latest Comments

ChristinaReedUK
ChristinaReedUK 20 Jun 2016

I don't understand why it's always a war between the two sides. Either, way the landlord is probably keeping a detailed inventory and will see the changes you've made. I just don't understand why there...

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NathanGreen
NathanGreen 16 Jun 2016

Seeing that the tenants are quite satisfied with their landlords and the properties is indeed great. I wonder, though, what is the situation in London alone? The tenants face sky-high rent levels in the...

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AndiMur
AndiMur 15 Jun 2016

TheGuardian published the same forecast. But on the other hand, professional brokers express different opinions. According totranio.com, an exit from the EU would not affect the demand/supply imbalance...

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Gary Holmes
Gary Holmes 14 Jun 2016

Having a professionally completed inventory at check-in and check-out is clearly (to me at least) of minor value. Tenants make un-authorised modifications and/or walk off with items that belong to the

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Violet Gibson
Violet Gibson 14 Jun 2016

Cautious people think buying off-plan is reckless, but over the past few years investors have literally made fortunes.Pre-release prices have obvious benefits for the developer, who gets instant finance...

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Kate Windleton
Kate Windleton 14 Jun 2016

An interesting research indeed. I guess that is in complete contrast with the United States where people often move from one coast to another. It will be interesting to hear the trends for people moving...

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NathanGreen
NathanGreen 14 Jun 2016

I think it all depends on the market conditions and how well your company is doing. You will agree that you can't demand more when you're killing yourself just to hang in there. Sometimes you need all

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ChristinaReedUK
ChristinaReedUK 13 Jun 2016

What does "detecting a bad vibe" mean actually. I've had certain vibes like these and yet have always found a reason , if there's any, why I don't like a certain property. The property maintenance might...

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keybanks estates
keybanks estates 08 Jun 2016

Great News for first time buyers, about time two!

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NathanGreen
NathanGreen 07 Jun 2016

I agree with #6 - you should maintain your garden according to the target buyer. One thing is universal, though - cleanliness and order. Having the yard clutter-free and clean will help people who do enjoy...

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NathanGreen
NathanGreen 06 Jun 2016

I will always say that London is overrated. Sure it is the capital, but it's too stuffed in there. It's more of a business city to me.

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Paul
Paul 25 May 2016

Estate agents are pathetic when it comes to fees. They have this 'I had to do it at 1% because that's what the others were quoting' mentality. We are the most expensive agents in our area, charging double...

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