Private landlords are abandoning their property portfolios in unprecedented numbers, a group of surveyors claims.
The Manchester-based chartered surveyors and auctioneers - Landwood Group - has seen a 300 per cent increase in instructions to sell residential buy-to-let properties in the past five months alone.
It comes amid increasingly challenging conditions for buy-to-let investors who are contending with punitive tax changes, high mortgage interest rates, increasing red-tape and uncertainty around regulations which have seen costs skyrocket.
Mark Bailey, partner at Landwood Group comments: “The circumstances are very, very challenging for many private landlords at the moment.
“It’s increasingly difficult for many to afford the rising costs of owning rental properties, let alone make a profit.
“Simply put, many landlords are unable to keep their head above water.”
In addition, ongoing uncertainty is prolonging the pain for many landlords.
Bailey adds: “Landlords are facing significant challenges not just in the short-term but in the long-term as well.
“We are seeing this in regards to regulation - while changes to Section 21, so called no fault evictions, have been kicked into the long grass, there is little clarity on whether they will come into force in the future.
“It’s a similar situation with regards to potentially tougher energy efficiency legislation.
“It means it’s incredibly challenging for landlords to plan ahead. They need more clarity and an end to this uncertainty.
“At Landwood Group, we’re seeing a rise in the number of landlords coming to us to auction their properties, as many are finding it too challenging to continue operating.
“We see cases ranging from sales of single houses to portfolios of over 100 properties.”
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Landlords leaving the market because of the toxic attitude towards them and the constant vilification?!... whoever would have thought!
Well done Shelter/Generation Rent, you've got what you wanted.
At least they are not trying to create a false optimism, but telling it like it is.
The taxation is so unfair that landlords can't offset mortgage interest & we are expected to keep up with the property regulations & extra costs & whatever goes with the territory. Maybe that was to the government's benefit when the interest rates were low but we are now paying tax on Revenue & not income, paying tax on losses is crazy, and impossible to sustain!
Already too late but I hope they wise up before they damage the whole industry, or see Rents keep rising!
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