Are You a Landlord Looking to Sell?

According to the NLA (National Landlords Association), 20% of landlords plan to reduce the amount of properties they hold within the next year.

This is the highest indication of potential property sales in the last 10 years. The NLA asserts that the higher intention to sell among landlords is due to the increasingly difficult taxation environment that landlords are faced with. The measures causing a change in attractiveness of holding properties for existing landlords are:

The removal of mortgage interest relief for higher and additional rate taxpayers
A 3% stamp duty surcharge on the purchase of additional property
The banning of letting fees that tenants previously paid upfront
According to Richard Lambert of the NLA, ‘More and more people are relying on the rental sector for a home, so it is vital that landlords not only provide a high standard of accommodation, but are incentivised to do so by the prospects of a reasonable return on investment.It is our view that these policies are undermining the viability of many landlords’ businesses and removing the incentives to invest in residential property for business purposes.’

According to Simon Heawood of property investment firm Bricklane, the measures will actually favour large scale professional landlords, leaving those with a smaller amount of properties at a disadvantage.

What do you think? If you are a potential buyer looking to purchase a property, or an investor looking to reorient away from property towards a more balanced investment approach, contact Westminster Wealth Management today.

The value of investments and income from them may go down as well as up and you may not get back the original amount invested.

Your home may be repossessed if you do not keep up repayments on your mortgage.

Our charges are usually between £395 and £995 depending on the type and amount of borrowing required and individual circumstances.

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