The National Landlords Association (NLA) has released data which shows that a number of landlords are planning to sell off part of their portfolio this year in response to recent tax changes.

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According to NLA’s research, approximately 20% of its members intend to sell off some of their portfolios in a bid to protect their overall property investments.  

Though the government offered a helping hand to first-time buyers in last November’s Autumn Budget, landlords have been hit with a wave of tax and regulations changes. This, and the fact that landlords are finding it harder to secure buy-to-let mortgages, is leading some landlords to decide to shrink the size of their property portfolios.  

Investors who buy a second property, such as a buy-to-let property, now pay an additional 3% stamp duty surcharge, while changes to mortgage interest tax relief, which are being phased in, will eat into their profits.  

The NLA has now released a series of videos which demonstrate how the tax and regulation changes are affecting landlords.  

The NLA’s CEO, Richard Lambert, said: “More and more people are relying on this sector (BTL) for a home, so it is vital that landlords not only provide a high standard of accommodation, but are incentivised to do so by the prospects of a reasonable return on investment.” 

Lambert continued: “It is our view that these policies are undermining the viability of many landlords’ businesses and removing the incentives to invest in residential property for business purposes.” 

However, if a number of landlords do follow through and sell off some of their portfolios, this will likely make it easier for would-be first-time buyers to get a foot on the property ladder, whether that be in Wimbledon or other parts of the UK.  

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Landlord Today

About the author

Nicolas Holmes

Nick joined Robert Holmes to inject fresh ideas and help grow the New Homes department of Robert Holmes as well as helping to inject technology into the business and to grow its client base. Together with one of the Directors Nick is in charge of all Development opportunities that Robert Holmes deals with along with sales. Aged 40, he provides succession together with the two existing directors. Nick has always been focused on building client relationships and sales. He built up his own gallery in Chelsea, where he had a loyal following of customers and artists.

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