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

SecomTech
SecomTech 19 Aug 2016

Firstly, I either lodge with DPS or do not take a deposit...secondly, If a tenant has not received a confirmation their deposit is secured with either a scheme or in an insured account with an agent/landlord,...

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jasonevans
jasonevans 19 Aug 2016

Belvoir has over 15 years of experience in property lettings, buying and renting and is one of the best agencies I know about. I have heard that they revived an award for the hard work. Really amazing...

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jasonevans
jasonevans 19 Aug 2016

Usually these areas are least affected when it comes to unexpected economical collapse.

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TheWaspNestRemover
TheWaspNestRemover 11 Aug 2016

You agree to pay for the treatment needed to get rid of fleas, ants, mice, wasps nests and other pests unless you can prove that these are a result of us not meeting our repairing responsibilities or these...

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madisonwelch80
madisonwelch80 02 Aug 2016

16% is quite a raise. Let's hope this tendency won't continue for long.

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madisonwelch80
madisonwelch80 02 Aug 2016

?66,963 is a serious price drop However buying a property it a serious investment only small percentage of the UK population could afford.

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madisonwelch80
madisonwelch80 02 Aug 2016

Wow, it kind of surprised me. I mean counting on mom and dad's bank even after retirement is too much. That's the moment in life when one should have ensured themselves. I am shocked.

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AbbieP.
AbbieP. 22 Jul 2016

"While house prices in the most expensive eleven boroughs have declined values in the cheapest eleven boroughs continue to rise" - not a nice way to even out the price range. London is overrated as it

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AbbieP.
AbbieP. 21 Jul 2016

And try to profit from your decisions, I may add

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CommercialTrust
CommercialTrust 19 Jul 2016

Retirement investment has always been one of the biggest draws of buy to let. And the buy-to-let demographic is, on balance, older. (Over a third of our applicants are over 50 at the time of application.) It...

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Forrest Wheatey
Forrest Wheatey 11 Jul 2016

I find the time perfect for ever home-owner wannabe. Prices should slowly, but steadily drop, at least for the inner buyer. Making it harder for outsiders to buy properties (the whole Brexit thing means...

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property guru
property guru 11 Jul 2016

Why should Ajay even have to be looking for it. It should be public knowledge. Why is not just publish each years and to were it is and be AUDITED. Accountability.

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