Landlord confidence in market drops

34% of landlords are planning to sell property over the next year compared with 22% two years ago.

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Many private landlords say they are less confident about the market than they were three months ago, according to a new report.

In analysis, the gap between the percentage of landlords planning to sell properties and those planning to buy has risen in the last two years from four percentage points to 21 percentage points.

Confidence is at its lowest in London and Wales and highest in the West Midlands, followed by the North East and Yorkshire and The Humber.

The figures, which are contained in the Residential Landlords Association’s latest Confidence Index, show that in the third quarter of 2019, 55.1% of private landlords are less confident about the market.

A third (34%) of landlords are said to be planning to sell property over the next year compared with 22% two years ago.

13% plan to purchase at least one property to rent out compared with 18% two years ago.

According to the RLA, the main reasons given by landlords for the loss of confidence and causing them to sell up are recent tax changes that are adding to increased costs.

David Smith, policy director for the Residential Landlords Association, said: “We warned the government that the tax increases they have imposed on landlords would be counter-productive, and these figures show how right we were.

“All they are achieving is driving landlords to leave the market, damage investment, and so making it more difficult for tenants to find somewhere suitable to live.

“Whoever is in government following the election needs to completely change the approach and start to support good landlords to encourage them to invest to meet the rising demand for rented housing.”

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