In a statement highlighting a growing trend in the property market, Antony Lark, Joint CEO of Spicerhaart, has reported a significant shift as landlords increasingly exit the market. This movement is attributed to escalating legislative pressures, rising tax liabilities, the elimination of mortgage relief, and demands for enhanced tenant security.
“We’re noticing that the level of landlords leaving is higher than anticipated,” Lark stated, emphasizing that this trend is particularly pronounced among retired landlords. Many are opting to sell their properties to meet rising living costs, assist their children in purchasing first homes, or manage concerns related to inheritance tax.
Lark stresses the urgent need for policies that encourage investment in the property market. While he supports Labour’s focus on tenant safety through regulation and licensing, he cautions that there must be balanced policies to incentivize property investment.
A significant potential boost to the market could come from reconsidering the reversal of mortgage tax relief for buy-to-let properties. Lark argues that such a policy change would inject much-needed growth into the sector.
He also calls for greater clarity regarding changes in tax liability, the removal of the second home stamp duty tax to encourage rental property investment, tax breaks for landlords affected by higher tax brackets due to rental income, and assurances concerning rent caps.
“The Labour government has a golden opportunity to resolve issues within the rental market and remove uncertainty surrounding the potential impact of the Renters’ Rights Bill,” Lark said.
He concluded by highlighting the importance of clear, consistent regulation, which would allow landlords to effectively plan and manage their portfolios, thereby ensuring a stable supply of rental properties and restoring market stability.