A Third Of All Landlords Looking To Sell-Up
Faced with lower profits, around one-in-three private landlords in the UK are looking to sell up in 2020, research reveals.
According to findings published by the Residential Landlords' Association (RLA), they say that 34% of landlords want to sell at least one property in the next year.
This will, the RLA says, compound the UK's rental housing crisis because there will be a 'chronic property shortage'.
The survey found that just 12% of all landlords are planning to invest in buy to let properties, that's down from 14% when a similar survey was carried out last year.
Also, 45% of landlords say that the biggest deterrent to their investing further in property is the 3% stamp duty surcharge.
Help landlords boost rental housing
Now, the RLA says the government needs to abolish the stamp duty levy to help landlords boost the supply of rental housing.
They say the move should include those who are developing new build homes, landlords who are converting larger properties into more affordable smaller units, plus those who are bringing homes back into use.
The RLA's policy director, David Smith, said: "The survey is clear evidence that the selling off of private rental housing is due largely to the government's extra tax on a new rental home.
"When a country needs all the extra homes it can get, it's ridiculous that good landlords are penalised for investing in new homes."
He added that with a budget being planned by the government, this is the ideal opportunity to shift policy away to support investment and help tackle a growing housing supply crisis.
The predicted drop in rental home supply being predicted by the RLA comes just a week after the Royal Institution for Chartered Surveyors says that the growing demand for homes to rent is increasing quickly.
Rents grew by 3.2% over the past year
Meanwhile, rents grew at a modest pace in November, according to an index published by HomeLet.
The firm says that the average rent in the month reached £947, that is a year-on-year rise of 3.2%.
When London's rents are excluded, the average rent across the country is £784. Tenants in London are paying £1,665 on average.
Of the regions, the highest rise was seen in Wales with a 5.2% growth, followed by Yorkshire and Humber with a rent rise of 4.7%.
The lowest increase in rents over the past year was seen by landlords in the West Midlands, where rents rose by just 1.9%.