Buy-to-let investors suffer 32% jump in losses
Summary
HMRC data cited in the article shows buy-to-let investors recorded £1.15 billion in losses on property sales over the past year, up 32% from £870 million previously. The piece attributes the increase to stagnant or falling house prices in some markets, low net yields, and added uncertainty from the Renters’ Rights Act.
Why it matters
This is relevant to surveyors because shifts in landlord sentiment can affect investor demand, transaction volumes and pricing in the private rented sector. It also signals changing risk perceptions around rental property ownership, particularly in markets where values have stalled or declined.
Key points
- HMRC Capital Gains Tax returns show losses on buy-to-let sales rose to £1.15 billion.
- The increase is linked to stagnant national prices and falling values in some areas, including London.
- Low net yields and higher administrative burdens are discouraging some landlords.
- The Renters’ Rights Act is cited as an additional factor prompting some investors to sell.
- The article suggests some landlords are comparing property returns with other asset classes and government bonds.
Organisations:
HMRC, Bowmore Wealth Group, Bowmore Financial Planning, The Negotiator
Regulations:
Renters’ Rights Act, Capital Gains Tax
Locations:
London, UK
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