Flood of homes for sale as landlords quit buy to let

Up to 380,000 landlords are thinking about selling rental property in the next 12 months.

The statistic comes from the National Landlords Association (NLA), a trade body for property investors.

The research revealed one in five landlords are considering selling at least one property within the year.

From that number, 45% want to sell flats and 33% terraced houses – which will offer affordable homes for first time buyers and landlords wanting to expand their property portfolios.

NLA chief executive Richard Lambert said: “These findings sound like positive news for potential new homeowners, but the reality is not everyone wants, or is in a position financially, to buy.

“In fact, if all these homes are sold as planned then it will lead to a significant fall in the supply of property available to those who choose to rent, or have no other option but to rent.”

One NLA member, a landlord named Gary from Edinburgh, says he is plans to sell up due to tax changes impacting his property business.

“I’m selling six flats so I can bring my debt down because we won’t survive these tax changes, it’s just not possible,” he said.

“We’re trying our best to charge a reasonable amount of rent, but when we sit down and do the figures, you’re sitting there going ‘this is just crazy’.

“I always thought as I got older, I would be able to sell my business for someone else to take on, but with all these tax changes I personally don’t think in 25 years there’ll be buy to let landlords, there will be these new corporations that build houses.

“It’s taken something 22 years to build up the business, but I now realise that now we’re going to lose probably half of it. I think this tax change is a big, big mistake”.