The National Landlords Association's latest research has revealed that the number of landlords in Central London who plan to sell their property has quadrupled since last year's Budget.
The NLA's findings show that just 4% of landlords in Central London intended to sell when asked before last year's Budget. That figure has now nearly quadrupled, up to 19%, when landlords were polled in January of this year.
The announcement during last year's Summer Budget that mortgage relief for individual residential landlords will be restricted has played a part in this rise. Many landlords will be left worse off as some basic rate taxpayers will be dragged into a higher tax bracket, leaving higher and additional-rate payers with significantly bigger tax bills.
The NLA has termed the changes as the Turnover Tax - this is because landlords' tax will be calcuated on the rental income they bring in, rather than the profits they make.
“Local property markets vary greatly across the United Kingdom, but we are seeing a loss of confidence across the board as many landlords realise they won’t be able to remain in the market," said Richard Lambert, CEO of the NLA.
“If landlords follow through with their intentions over the coming months this could lead to a massive sale of property, as we have previously warned. However, this may not be a straightforward process, especially for those with stock in low demand areas.
“We urge those considering selling up to think about when they will need to do so, and to plan ahead now in order to minimise the risk of losing money as a result of a failure to sell”.