Research from the National Landlords Association shows that 20% of its members plan to reduce the number of properties in their portfolio in the next year – the highest level of intended property sales in 10 years.
The NLA believes this is due to recent tax changes including the withdrawal of mortgage interest relief for higher and additional rate tax payers, the 3% surcharge on additional property purchases, and the banning of upfront letting fees.
The NLA says landlords and tenants will "pay more than their fair share in tax as a result of changes made by the Government to curb buy-to-let activity in the private rented sector". CEO of the National Landlords Association, said: The Government needs to look at the impact these policies will have on the PRS.
“More and more people are relying on this sector for a home, so it is vital that landlords not only provide a high standard of accommodation, but are incentivised to do so by the prospects of a reasonable return on investment.
“It is our view that these policies are undermining the viability of many landlords’ businesses and removing the incentives to invest in residential property for business purposes.”