Landlord losses soar – and figures may be under-estimate
Summary
Reported crystallised losses on sales of residential buy-to-let investments rose 32% in the latest tax year to £1.15 billion, according to data cited from HMRC and Bowmore Wealth Group. The article links the increase to flat or falling house prices, higher mortgage costs and the impact of the Renters’ Rights Act on landlord behaviour.
Why it matters
Surveyors advising landlords, investors or lenders may see greater sensitivity around asset values, disposal decisions and rental-sector risk. The article also highlights how legislative change and weaker pricing conditions can affect investor sentiment and transaction activity in the private rented sector.
Key points
- Crystallised losses on residential property disposals rose 32% year on year to £1.15 billion.
- Bowmore says the figure likely understates total losses because it excludes paper losses.
- London prices fell 2.2% over the last 12 months, while UK prices were broadly flat.
- Rising mortgage costs and the Renters’ Rights Act are cited as pressures on buy-to-let investors.
- The article suggests some landlords may sell even at a loss due to higher administrative burden and lower net yields.
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