Landlords are increasingly selling off buy-to-let properties, with approximately 44,000 homes leaving the market across the UK between early July and mid-September. This equates to an average of 562 homes per day, marking the highest rate since 2016, according to property data company TwentyCi.
A report from the National Residential Landlords Association (NRLA) indicates that 60% of single property landlords are uncertain about remaining in the market by the end of 2027. The NRLA report cited rising costs, government policy, and increased administrative burdens as factors contributing to this sentiment.
Legislative changes over the past decade have impacted landlords, including the gradual erosion of tax relief on mortgage interest from April 2017. Previously, landlords could deduct 100% of mortgage interest from rental income before tax, but this has been replaced by a 20% tax credit on interest payments. Suzanne Smith, a landlord and author, noted that this change has had a greater impact with rising interest rates.
More recently, the Renters' Rights Act, largely effective since May, has made landlord logistics in England more challenging. This includes making it harder to evict tenants following the abolition of 'no fault' evictions and restrictions on refusing tenants with pets or requesting more than one month's rent in advance.
Despite these challenges, some landlords are finding opportunities by focusing on long-term lets for families, referencing prospective tenants thoroughly, and ensuring properties meet EPC rating C. Research by Rely Mortgages suggests 55% of landlords are spending more time on the tenant experience, with 59% speaking directly to tenants to understand their needs.