Rightmove blames EPCs and looming CGT changes for landlord exodus
Rightmove says that 18% of homes for sale were former rental properties and says many landlords are becoming increasingly worried by PRS landscape.
A record number of rental properties are up for sale as landlords fear tax changes in this month’s Budget, Rightmove says.
Speculation that Chancellor Rachel Reeves may raise Capital Gains Tax rates is forcing many landlords to assess whether it is worth staying in the PRS.
Rightmove’s data shows that 18% of homes for sale were previously available to rent, compared with 8% in 2010.
And upcoming changes to EPC regulations with every rental property requiring a minimum EPC C rating by 2030, are also having an effect, the portal argues.
New record
The latest Rental Trends Tracker from Rightmove shows the average advertised rent for new properties coming to the market outside London, has hit a new quarterly record, at £1,344 pcm.
The average number of tenant enquiries for each rental property available has fallen to 15, down from 23 at this time last year, but is still nearly double the eight recorded in 2019.
Tim Bannister, Director of Property Science at Rightmove, says: “Tenant competition has eased slightly from last year, but the market is still far from balanced.
“We are seeing some landlords choosing to exit the market with potential tax changes and stricter EPC regulations as additional factors in landlords’ decision-making.”
We’re seeing fewer new instructions coming through.”
Lynda Woodcock, Managing Director at letting agency Pheasant Retreats in Witney, Oxfordshire, says: “With so many landlords considering selling their properties ahead of new legislation, such as the proposed changes around EPC requirements and tax increases, we’re seeing fewer new instructions coming through.”
And Nathan Emerson, CEO at Propertymark, says: “Propertymark has continually highlighted to government worrying trends within the marketplace and that over regulation and additional pressures may damage future investment.
“As the Renters’ Rights Bill makes its way through Parliament, there is a danger it may not actually benefit all tenants”.
‘Million rental homes will be lost’ if Chancellor raises CGT
