Almost half landlords who answered our most recent survey said they had stayed in the sector longer than planned due to the impact of Capital Gains Tax - slowing the rate of sales.
However for some landlords the wider tax changes, including changes to Mortgage Interest Relief, have driven them to sell up or start planning to offload properties.
New research from the NRLA shows landlords are taking action to minimise the impact of MIR changes by:
- increasing rents (20%)
- Looking for new investments (12%)
- Selling property (10%)
- Cancelling expansion plans (10%)
- Beginning to exit the market (8%)
The data was collected during the NRLA’s Quarter 3 survey, with a full report due to be published next month.
The NRLA asked members about the impact of tax changes on decisions regarding their portfolio to assess the effect they had had on the overall supply of homes in the private rented sector.
With one in five landlords planning to increase rents and one in 10 planning to exit the sector it would seem that the current tax regime depresses supply and increases rent for tenants.
This follows on from a fall in the supply of homes in 2000, which you can read more about here.