More than one in ten landlords are being pushed out of the buy-to-market, according to new research.
The findings by lender Together suggested that rising taxes and expenses caused by new Government laws is behind the trend.
It revealed that 12% of landlords will be offloading properties this year, with 11% planning to exit the market completely.
In addition, 8% of landlords said they don’t foresee any opportunities in the next 12 months and will pause their investment activity and wider property plans.
Renters’ Rights Bill
When asked about the main reasons for leaving the buy-to-let market, 14% of landlords cited Capital Gains Tax, while 12% said rising interest rates were to blame and 8% cited the headaches caused by the Renters’ Rights Bill.
However, despite the tenth of landlords planning to reduce their portfolio this year, a third – at 29% – are planning to expand or diversify.
The research also showed the challenges which persist for those planning to remain in the buy-to-let market.
When asked about what they consider the biggest challenges over the next 12 months will be, 17% of landlords pointed to the rising cost of building materials.
In addition, 16% cited competition from overseas investors as well as further policy changes from the Labour Government.
Meanwhile, 15% of landlords consider stamp duty increases as among the biggest challenges, and a further 15% feel the same for safety standards.
Ryan Etchells, of Together, said: “There will likely be some smaller or amateur landlords who decide to sell off investments or exit completely, but in their position we are already seeing larger, professional landlords stepping in to seize diversified opportunities.
“Until the final outcome of the Renters’ Rights Bill is known, there may be a bit more volatility as landlords assess the cost impact to them and their property plans this year.”
