The government’s reduction of mortgage interest tax relief on buy to let properties in a major factor for 50 per cent of landlords considering selling up according to Your Move and Reeds Rains lettings agencies.
The agencies’ survey of 1,200 landlords shows that around nine per cent think it’s a good time to sell up, with the tax reforms influencing their decision more than any other factor. Many fear letting out a property will become far less profitable when the reforms begin to come into force in April 2017.
This loss of enthusiasm is even dampening the optimism of the 31 per cent of landlords who nonetheless think now is a good time to buy rental properties. This is reflected in the survey result that 44 per cent of landlords believe investing in buy to let is more complicated than it was six months ago due to more rigorous regulation and the so-called Right To Rent immigration checks.
Almost a fifth of landlords surveyed admit to being daunted by this task, and now feel unequipped to let out their houses without the support of letting agents to manage their investment.
Nearly a quarter of landlords believe the legislation on letting out properties has become more confusing, with more than one in ten feeling that they don’t fully understand the current regulations.
These changes are denting landlord confidence, and general disenchantment with the letting industry was an important factor for 23 per cent of landlords who think now is a good time to sell.