Seven in ten UK landlords are planning to sell at least one property in the next 12 months, new research shows.
The survey – also small one, conducted during the spring by GoSimpleTax amongst 134 self-employed landlords – shows 43% citing new and changing regulations such as the Renters Rights Bill and Making Tax Digital, as their principal reason for selling at least one property.
When asked why they were planning to sell, some landlords said it is “becoming no longer financially viable” to remain in the rental sector. More than one in ten (14%) reported that they were “very unconfident” in the long-term profitability of being a landlord, with a further 17% feeling “somewhat unconfident”. Just 10% said they are “very confident” in the profitability of their rental businesses.
Landlords have seen mixed results on rental profits in the past 12 months. Around a third (32%) have seen rental profits increase, but 34% have experienced a decrease. Another 34% reported that rental profits had stayed the same.
Only 7% of landlords said they were planning to purchase additional properties and expand their portfolio in the next year.
Mike Parkes of GoSimpleTax says: “These findings show a clear tipping point for landlords as confidence in profitability drops but costs keep rising. Many landlords are scaling back or leaving the market entirely. It’s crucial to acknowledge that new and changing regulation is their number one concern, and that support and guidance is available.
“Some mandatory changes, such as Making Tax Digital, don’t have to be a burden. With around ten months to go, preparing for it early by getting comfortable with digital reporting ahead of time will help landlords to reduce stress and stay compliant. It should be a key consideration for any property professionals thinking about their next steps.”
This article is taken from Landlord Today