NEW: Landlords quitting the PRS cite Tory’s renting reform plans and rising costs
One-fifth of landlords who are selling up blame rental reforms while a quarter are planning to sell due to rising costs, according to new research.
Simply Business’ UK Landlord report reveals that almost half of the 611 landlords polled
have sold a property in the last year or are planning to sell. However, 29% might change their mind if more tax relief was introduced and 22% would reconsider selling if they had more clarity on legislation and regulation from government.
The research shows many of landlords’ biggest concerns and challenges relate to regulation such as rental reforms, rising taxes, and higher energy efficiency standards, leading to 58% saying that confusing and rapidly changing government legislation is their biggest challenge. Half of the landlords are worried about further regulation and the complication this will add.
An increase in licensing and the prospect of rent controls is seen as the biggest threat to the rental sector by 19% of landlords, while 45% believe rising costs are the most significant factor.
The rental reform white paper combined with the rising cost of maintenance and letting a property, is pushing many landlords out of the buy-to-let market, says UK CEO Alan Thomas (pictured).
“As regulation of the rental sector continues against a backdrop of rising costs, it’s vital landlords get the necessary government support, education, and clarity to rent out high quality homes that are compliant with the law,” he adds.
Simply Business reports that although some landlords have hit pause on adding to their portfolio, many remain optimistic about the long-term returns and stability offered by buy-to-let. Almost half still think letting property is a worthwhile investment and 37% expect to see their yield increase by up to 10% this year.
