More than 65% of landlords who responded to Property118's latest sentiment survey stated their intention to sell one or more properties or leave the sector completely over the next three years. Some landlords are reportedly already taking these steps.
The decision to sell is influenced by various factors. While higher rents can make retaining a property attractive, particularly with reliable tenants and low borrowing, concerns exist regarding higher property income tax rates set to begin in April 2027 for personally owned properties, and the risk of further interest rate increases.
Over half of the survey respondents anticipate property values will either stagnate or fail to keep pace with inflation over the next three years. This expectation challenges the assumption that holding onto properties will necessarily lead to a better financial position.
According to Pegasus Insight, self-managing landlords spend an average of 51 hours per month managing their properties. New requirements, such as the PRS database and Making Tax Digital, are adding to this workload.