Landlords Looking To Sell Rental properties

According to Rightmove, the number of former rental homes sold has reached its highest number on record.

There are several reasons for this, from historic changes in taxation over the years to the abolition of Section 21, the banning of no-fault evictions introduced with the government's Renters Rights Bill, and increased legislation, all of which are perceived as cutting the profit from property rentals.

Capital Gains Tax Increases on Rented Properties

There is a further potential spanner in the works in the Autumn Budget with expected rises in Capital Gains Tax (CGT) and landlords looking to sell before these increases are introduced.

Where a rental property has a great deal of equity or profit, then increases in CGT can have a massive impact when coming to sell.

With the growing demand for rental properties, a serious lack of available stock, and landlords selling up, the situation in the Private Rental Sector could worsen.

We would like to hear from landlords who have recently sold rented properties or are planning to do so soon.

Do You Have Rooms To Rent?

Also, if you are finding that the downsides outweigh the rewards of owning rented properties, have you considered renting rooms or, for example, converting to an HMO? This can increase the return, in most cases, making it more financially viable.

If you have a rented property and are considering renting individual spare rooms, you can register with RoomsForLet here. Once registered, post your room to rent advert to see the type of response you can expect.

Legislation Changes to the Rental Property Sector

Changes to legislation are introduced, in most cases, to

1. Increase tax revenue.
   In times of austerity, the government will look at options for increasing tax revenue, and the Private Rented Sector has been an easy target for some years. The current government vowed not to raise Income Tax, VAT, and other taxes, so they will argue that the revenue needs to come from somewhere. As with the Winter Fuel Payment withdrawal for most pensioners, CGT on rental properties could be an easy target.
   
   
2. Stifle rent increases by introducing legislation to limit any such increases.

However, these changes can have an opposite and detrimental effect, as with the introduction of Section 24, which pushed landlords to sell properties, limiting available rental stock and, therefore, pushing rents up even further.

Demand Outstripping Supply of Rental Houses

Demand for rental properties has outstripped supply for some time. The only way to reduce this demand is to build new homes rather than introduce new regulations.

The government must incentivise landlords to retain properties and continue in the sector. Without these incentives, tenants will find it increasingly difficult to find suitable accommodation at affordable rents.

Support, such as tax breaks, can encourage landlords to remain and reduce pressure on the rental sector.

Increasing CGT will have the opposite effect.

We wait with bated breath to see what measures the government introduces regarding CGT and the Private Rented Sector in general.

While we want to hear from landlords looking to offload rental properties, we would also like to hear from tenants about their experience securing suitable rooms and properties.

Please contact us with your experiences, and we will be happy to publish your concerns and apply pressure to the relevant bodies.

If you want a room to rent, you can continue your search here or register as a tenant to match your details to available rooms.