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.
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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