Private landlords selling up in ‘hostile’ market

THE PRIVATE rental sector is starting to shrink, a property expert has warned.

Landlords are selling up or moving into holiday lets due to financial pressures, a lack of legal back-up and regulations that are virtually impossible to meet.

It comes as locals struggle to afford their own properties in locations such as Whitby or the Yorkshire Dales due to rocketing prices and potential homes being snapped up and turned into holiday lets or Air BnBs.

A poll by the National Residential Landlords Association found that 24 per cent of landlords are thinking of selling properties in the next 12 months, compared to 14 per cent thinking of buying.

Speaking on behalf of the association, Richard Blanco said: “Our research shows seven per cent of landlords anticipate investing in a holiday let in the next year – that could be buying a new one or shifting into a holiday let.”

Several factors were behind it, he said, from financial pressures, red tape and little legal support.

One was the section 24 arrangement where landlords are taxed on turnover rather than profit. Others included capital gains, which tax landlords 28 per cent rather than 20 per cent; three per cent extra stamp duty if you buy property as a landlord; the Government pledge to abolish section 21 notices allowing landlords to regain possession of their property and a rule from 2026 where properties can only be let if they rate C or above on an energy-performance certificate.

He added: “There are so many disadvantages to being a landlord. They won’t sell because of capital gains so think ‘What can I do instead?’

“Where landlords are desperate they will use section 21 but it can take a year to go through the courts. We are in a hostile environment for landlords. They think ‘What’s the point?’”