Sell My House Quickly Grantham

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East Midlands landlords looking to sell

It seems many East Midlands landlords are looking to sell as the increased levels of regulation added to Covid regulations are making it almost impossible to turn a profit these days. A survey from Nottingham Building Society has found that some 36 per cent of landlords plan to review their portfolios over the next two years, with a fifth expecting to sell off all or some of their portfolio. 16 per cent of landlords surveyed said they expected to buy more properties in the future, a mere one 1 in 6 which highlights the issues being faced currently.  

Landlords cited regulatory issues as the main reason for wanting to leave the private rental sector. A further 24 per cent said the end of tax relief on buy-to-let mortgages was leading them to sell up. 

For those growing their portfolios, the ability to earn a good income was the main driver. Some 83 per cent of landlords cited this as their motivation, while 57 per cent said rising property prices would make buy-to-lets a good investment. A further 61 per cent said low savings accounts interest rates made property the better investment. 

Denise Wells, head of mortgage operations at The Nottingham, said: “Our research suggests sellers currently outnumber buyers in the buy-to-let market with regulatory issues and tax changes among the reasons persuading landlords to pull out of the market. 

“However, it remains the case that there are potentially strong returns to be earned in the buy-to-let market and we continue to see landlords buying rental properties whilst our research indicates that many more potential landlords are considering going into the market too. 

“Whether landlords are buying or selling it is crucial they get the best possible advice on their finances and source the most competitive mortgages.”

This last sentence is very important as if you are using funding then the inability to write the interest off against your tax may make the whole exercise pointless with the borrower looking to capital appreciation for any level of profit. Given the boom we have experienced in the last year I doubt that this is a strategy that will bear fruit.

If you are one of the East Midlands landlords looking to sell or review his portfolio then contact us and we will be happy to discuss your situation.