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”.

Join our mailing list:

Leave a comment



Latest Comments

RyanGeo
RyanGeo 18 Sep 2017

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

view article
sean benton
sean benton 01 Sep 2017

Identity theft is a thread for any profession. So,people should stay alarmed. I once take help from a letting agent and came to know that letting agents are taking every precaution to prevent fraudulent...

view article
Mark N.
Mark N. 30 Aug 2017

We have seen a surge in instructions over August and that should continue into September too.

view article
Chris
Chris 30 Aug 2017

Unfortunately, all the legislation bears its force on Landlords and ignores, naively, the effect of Rogue Tenants on the ability of landlords to keep houses in repair and offer properties for rent at reasonable...

view article
Christian Donovan
Christian Donovan 18 Aug 2017

The write-down on house values, combined with the fall in the GBP saddled the fund?s property portfolio with a 1.4% loss in the second quarter. The shocking amount of $240 million.

view article
Samantha Goodman
Samantha Goodman 11 Aug 2017

Interesting point of view.

view article
Samantha Goodman
Samantha Goodman 11 Aug 2017

It depends on the people, some older adults decide to make a long-distance move in order to live closer to their children or settle in a place with a lower cost of living.

view article
brandonlee10
brandonlee10 24 Jul 2017

The financial ramifications of the triggering of Article 50, the starting gun for Britain's departure from the EU, are far from clear. Buyers will be most cautious in London, given that buying a home in...

view article
IrisJ.
IrisJ. 19 Jul 2017

Great advice, but may I also add that when buying an already built home, make sure you do all of the proper inspections. Most importantly pest inspection because people tend to get surprised when they

view article
IrisJ.
IrisJ. 17 Jul 2017

The third point is, in my opinion, the most important one. People have become too inconsiderate and careless when it comes to rented properties. If a landlord wants to protect their property, regular visits...

view article
cornishalan
cornishalan 10 Jul 2017

Added to the cost of purchasing these village properties are the above average maintenance costs. Particularly where the property is a listed building or requires specialist building skills such as thatching...

view article
Jo Mullett
Jo Mullett 07 Jul 2017

Here in Swansea, known as the Japanese knotweed capital of the UK, it never fails to amazes me that people have no idea of the potential problems this invasive non-native plant can cause when buying or...

view article

Related stories

More articles from Landlords

Property Finance Roadshow 2017

4th - 12th October

4 days
6 specialists
4 locations
Free to attend

Click here to register now