Some 69% of landlords plan to sell at least one property in the next 12 months, research from GoSimpleTax has revealed.
The top concern (43%) among investors is changing regulations, likely referring to the Renters’ Rights Bill and its abolition of Section 21 evictions.
Only 10% of landlords are “very confident” in the profitability of their rental business
Mike Parkes, technical director at GoSimpleTax, said: “These findings show a clear tipping point for landlords as confidence in profitability drops but costs keep rising. Many landlords are scaling back or leaving the market entirely.
“It’s crucial to acknowledge that new and changing regulation is their number one concern, and that support and guidance is available.
“Some mandatory changes, such as Making Tax Digital, don’t have to be a burden. With around 10 months to go, preparing for it early by getting comfortable with digital reporting ahead of time will help landlords to reduce stress and stay compliant. It should be a key consideration for any property professionals thinking about their next steps.”
Landlords have seen mixed results on rental profits in the past 12 months. Around a third (32%) have seen rental profits increase, but 34% have seen a decrease. Another 34% reported that rental profits had stayed the same.
Only 7% of landlords said they were planning to purchase additional properties and expand their portfolio in the next year.