Labour’s policies since it came to power three months ago are prompting many landlords to consider getting out of the property market, quick-buyer firm Upstix claims.

In the week following announcement of the Renters’ Rights Bill alone, Upstix saw a 33% increase in landlords enquiring about using its services.

The bill contains some measures which landlords do not support, such as a ban on Section 21 ’no fault’ evictions.

Capital Gains Tax increase

Rumoured increases to Capital Gains Tax in the Budget at the end of this month are also having an effect, Upstix says.

There are currently 22,000 tenanted properties for sale in England, with the average time it takes to sell being 195 days.

Upstix, an iBuyer platform backed by leading property industry figure Robin Paterson, saw the biggest increase in enquiries come from West Sussex, which was up 190% in the last four weeks.

Lancashire, the region with the most enquires overall, increased 45% over the same period.

In the past few weeks Upstix has seen a huge increase in enquiries from landlords.”

Fred Jones, CEO at Upstix, says: “In the past few weeks Upstix has seen a huge increase in enquiries from landlords looking to vacate and sell their properties to avoid any potential increases in Capital Gains Tax that might be announced in the October Budget.”

Tax up £15,000

Meanwhile, the latest research by Benham and Reeves reveals that rumoured changes to CGT could see the average landlord hit by a £15,000 increase in tax owed on the average buy-to-let property.

Benham and Reeves analysed the current estimated level of CGT paid by landlords at current tax thresholds, and how this could change if these thresholds are brought into line with income tax.

With the average landlord remaining in the buy-to-let sector for around 10 years, those considering an exit today would have seen the value of their investment increase by £105,000 per property.

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