Thousands of private landlords have exited the buy-to-let sector in recent months, and that trend looks set to continue with more property investors likely to sell up.
Increasingly concerned about mounting costs, a growing number of buy-to-let landlords want to reduce the risk by reducing the size of their property portfolio.
Mortgage interest relief changes, the scrapping of the ‘wear and tear’ allowance and the introduction of the 3% stamp duty surcharge have hit landlords’ profits over the past few of years, which partly explains why so many are exiting the buy-to-let market and thus reducing the supply of much needed private rented stock.
The government’s draconian tax changes have not just pushed a number of BTL landlords out of the PRS, but have also left prospective tenants in some parts of the country with little alternative but to bid against each other, pushing rents up in the process, as a result of falling housing supply.
The long-awaited Renters’ Reform Bill, which was due to be published this week – more than four years after the government pledged to abolish Section 21 evictions – has been delayed again, but is still set to be introduced, much to the dismay of many BTL landlords.
Tory donor Crispin Odey has branded the housing secretary Michael Gove’s second home interventions “communist”.
The hedge fund manager, who is a critic of Rishi Sunak’s wider economic policies, told the Telegraph: “We are miles away from having a country that can work, that is open for business.
“Gove might as well be a communist. Michael has basically swallowed the pills.”
And so is Gove a communist, and what impact in the government having on the private rented sector?
Russell Quirk joined Nigel Farage on GB News to discuss the matter.
Worth a watch. Farage starts by talking about the Government’s “war on landlords”.
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Why on earth are you giving Farage airtime? Why is he relevant?
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I happened to see that interview and unlike the BBC it gave an open debate on why rents are rising and explained why landlords have been leaving the market in droves; rather than give half a story. An interview with a property expert is very relevent to the property profession so why should it not be mentioned? I have been trying to understand why you seem to feel there is no relevence.
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