A new survey is a warning the government that it must stop forcing landlords out of the private rental sector by reversing increasing regulations and taxes.
That’s the view of outgoing ARLA Propertymark president Maxine Fothergill, commenting on the the latest English Private Landlord Survey Report. This shows that 10 per cent of landlords plan to sell all their properties over the next two years – a dramatic doubling of the five per cent in the previous poll, four years ago.
Today some 55 per cent of landlords planning to sell says existing new laws, and the upcoming Rental Reform Bill, are reasons why they are quitting.
Only one in nine landlords want to expand their portfolios while a slightly higher proportion are reducing or ending their involvement with buy to let.
Maxine Fothergill says: “As highlighted in the report, a large proportion of private landlords are retired, and the majority take home a gross profit of £20,000 or less a year and rely on rent as an income.
“Consequently, as landlords are persistently hit with legislative and tax changes, financial obligations are growing and incentives are non-existent, pushing many to withdraw their homes from the sector.
“Landlords have reported within the survey that for those who are going to leave the sector, recent and forthcoming legislative changes were the driving key factor to doing so.
“Urgent action is needed from the UK government to maintain existing investment as any further reduction in supply could have a detrimental ramification for the housing sector and a rise in those facing homelessness will be inescapable.”
The English Private Landlord Survey also reveals that the average total gross rental income is £17,200 with well over half of landlords having a rental income of less than £20,000. Almost one in three bring in between £20,000 and £49,999 with 15 per cent of landlords earning over £50,000.