Landlords ARE leaving market says big agency boss

Antony Lark, Joint CEO of Spicerhaart says the market is witnessing a significant shift as many landlords exit due to increasing legislative pressures, tax liabilities, the removal of mortgage relief and calls for action to make renting ‘more secure’ for tenants.

“We’re noticing that the level of landlords leaving is higher than anticipated – particularly among those who’ve retired, who need the money to meet rising living costs, or are helping children buy first homes, or who’ve concerns over inheritance tax,” he says.

There is a critical need for policies that also incentivise investment in the property market.”

Although Lark welcomes Labour’s emphasis on protecting tenant safety through regulation and licensing, he warns: “There is a critical need for policies that also incentivise investment in the property market.

The biggest impact though would come from “reviewing the reversal of mortgage tax relief for buy-to-let (BTL) properties. Such a monetary policy change would inject much-needed growth into the market.

Opportunity

“I would also like to see clarity around tax liability changes, removal of the second home stamp duty tax to encourage investment in rental properties, tax breaks for landlords who’ve been pushed into higher tax brackets due to rental income, and assurance over rent caps.

“The Labour government has a golden opportunity to resolve issues within the rental market and remove uncertainty surrounding the potential impact of the Renters’ Rights Bill.

“Clear, consistent regulation will allow landlords to plan and manage their portfolios more effectively, ensuring a decent supply of rental properties in the market, which will restore stability to the market once more.”