The biggest worry for landlords is about legislative changes and future tax changes, according to the government’s latest English survey of private landlords.
Respectively, 52% and 50% of the 9,000 landlords and rental agents surveyed gave these answers.
The survey also shows that 10% of owners plan to sell all of their properties and exit the market within the next two years, up from the 5% who answered this way when asked. the question in 2018.
When landlords who planned to sell a number of their properties or exit the sector altogether were asked why they wanted to do so, 55% said recent legislative changes followed by upcoming legislative changes – the report gives the amendments to Article 21 as an example – to which 53% responded.
The third most common reason was personal reasons, such as funding for retirement.
Some data also signals the continued professionalization of the sector: in total, 35% of owners who rent out property as part of a corporation said they plan to buy more properties over the next two years, compared to 9% of individual owners or plan to do so. then.
However, overall, only 11% of owners want to add more properties to their portfolio, while 12% want to reduce their number of properties. The largest cohort, at 48%, has no intention of changing the number of properties under their control.
The survey also shows that the median total gross rental income is £17,200, up from the £15,000 calculated in 2018.
More than half – 56% – of owners have rental income below £20,000 and 29% bring in between £20,000 and £49,999.
Owners earning more than £50,000 from their portfolio make up 15% of survey participants.
The government estimates that, on average, homeowners derive 47% of their total income from property, up from the 42% seen in 2018.
Arla Propertymark President Maxine Fothergill comments: “While homeowners are constantly impacted by legislative and tax changes, financial obligations are increasing and incentives are non-existent, causing many to withdraw their homes from the sector.
“Owners indicated in the survey that for those who will leave the sector, recent and upcoming legislative changes have been the key factor in doing so.
“Urgent action is needed from the UK government to maintain existing investment, as any further reduction in supply could have damaging ramifications for the housing sector and an increase in homelessness will be inevitable.”