Property News > Research finds that more landlords in UK are planning to sell rather than add to their portfolios

Research finds that more landlords in UK are planning to sell rather than add to their portfolios

The property market is somewhat of a paradox at the moment, it has suffered from the post Brexit crash that many predicted but instead, price growth is continuing to rise. That said, a shortage of supply, increasing demand and an ever-growing hurdle for first time buyers being able to afford a home means all is not rosy.And now, it has emerged that more British landlords are planning to sell than they are add to their portfolios. As many as one in five landlords in Britain are planning to sell at least one of their properties in the next year, despite an increasing demand for lettings.Some 22% landlords are looking to sell whilst 18% are planning to buy more properties to add to their portfolio. Over the past half a year, the number of landlords who have added to their portfolio has fell 7% whilst the proportion who have reduced the size of their portfolio has risen 2%.In addition to this, 33% of landlords have experienced an increase in demand for homes to rent over the past three years and as they become by an imbalance in the supply and demand for rental properties, almost half indicated that they expected to increase their rents over the next year.The main reason for raising rents generally pans down to the phasing out of mortgage interest relief which began in April with 35% stating that being taxed on their turnover rather than profit leaves them with no choice but to raise rents.Whilst a number of landlords still do wish to expand their portfolio, the 18% is down from six months ago and the number of those planning to reduce the size of their portfolio has increased, something which may be down to landlords reacting to policy change. Demand for homes to rent is continuing to rise and punitive tax changes are turning many landlords looking to provide good accommodation off. In order to meet demand, it’s important that a pro-growth taxation that actively supports landlords is met so investment in the homes to rent can happen.Delving more into recent findings, there is even more concern. One in three landlords admitted that they had attempted to evict a tenant over the past year with 60% putting it down to rent arrears with tenants owing an average of £1,000. Regarding the impact of welfare reform, the research prints a stark account of the issues associated with the introduction of universal credit.Amongst those who let to tenants on universal credit or housing benefit, some 38% reported that they have experienced those on universal credit going into rent arrears. Though, it was also found that 53% of landlords successfully requested an Alternative Payment Arrangement. The issue of rent arrears for universal credit tenants, is also one of the reasons at the forefront of a landlord seeking to regain possession of the property, with 64% of landlords stating this.

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