Some 600,000 or 41% of landlords are considering selling up and exiting the market while 10% are ‘definitely’ mulling such a move, a report from insurer LV= has concluded.
The key reasons for the potential exodus is that many landlords find they are having to commit increasing amounts of time and money to their properties but with diminishing returns.
“Being a landlord is not without its challenges and it’s clear that many are feeling the strain due to tax and regulatory changes facing the industry,” says the company’s divisional Managing Director, Heather Smith.
Based on a survey of 755 landlords, the report also found that 91% were operating their properties as a part-time venture with on average two properties.
But it is the cost of running a buy-to-let property that is bearing down most on landlords, the insurer reckons, with between 37% and 52% having spent money on refurbishing ageing properties over the past 12 months.
“Recently landlords have faced a raft of haphazardly introduced new regulations which, compounded by tax changes, have increased the cost of letting,” says Meera Chindooroy, Policy and Public Affairs Manager at the National Landlords Association (left).
“We have not seen any signs yet that the Government intends to pursue a more strategic approach to help landlord’s future-proof themselves.
“The Government’s proposal to abolish Section 21 will intensify the impact that rent arrears and damage to property has on landlords’ ability to run their businesses successfully.”