Small
landlords exiting buy-to-let market
Smaller
landlords are exiting the buy-to-let market following cuts to tax relief,
according to research from estate agency Hamptons International.
The research
found that the number of landlords operating in the UK fell to a seven-year low
of 2.66 million in 2019. Hamptons International’s Monthly Lettings Index found
that the landlord count has dropped 8% from its peak in 2017.
Measures such
as the reduction in mortgage tax relief and the 3% stamp duty surcharge on buy-to-let
properties have had an impact on the market, according to Hamptons
International.
The changes are
particularly affecting smaller landlords, with the number of landlords who now
own just one property falling.
Commenting on
the figures, Aneisha Beveridge, Head of Research at Hamptons International,
said: ‘Those who have stayed tend to have bigger portfolios – a further sign
that the sector is professionalising.
‘The average
landlord in Great Britain owned 1.93 properties last year, the highest level
since 2009. Rents rose in every region across Great Britain in January to stand
3.6% higher than at the same time last year.
‘The number of
new homes purchased by landlords remains low, which is feeding through to fewer
homes available to rent. This is particularly true in the South, where rents
are rising the most.’