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

luxus
luxus 27 Sep 2016

It can be stressful. More clarity is needed on the process, from a customer perspective and consideration should be given to using the Scandinavian model where the sales process is much quicker.

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Jimmy_McCoy 16 Sep 2016

I think that the main reason to buy garden purchases in last minute is because people always search for the best deal. In summer months there are abundance of seasonal goods and it means more low cost

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Jimmy_McCoy
Jimmy_McCoy 16 Sep 2016

Buying a home often is more expensive than you expect. There are lots of hidden costs such as: stamp duty, surveys and valuations, mortgages etc. that can add more than 10% to the total bill

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oliviaG 29 Aug 2016

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Jason Roberts
Jason Roberts 25 Aug 2016

Any predictions what average rent will be at the same time next year, anymore drops coming?

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dylanvan
dylanvan 19 Aug 2016

very good, thanks for sharing

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

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