One in five UK landlords will reduce property portfolios in 2018


As many as 20% of UK landlords have said they are planning to reduce the volume of properties they own in 2018, as the NLA warns tax and regulatory changes could damage the market.

The number of landlords who intend to sell property this year is at a 10-year high at 20%, according to research from the National Landlords Association (NLA). Although this still means the vast majority of buy-to-let investors are planning on maintaining or growing their portfolios, the increase could indicate a slight slowdown in the sector.

Recently, the government has imposed a number of measures targeting buy-to-let landlords, including the 3% stamp duty surcharge for second homes, the Section 24 change that limits mortgage interest relief on income tax, as well as plans for tougher action against rogue landlords and additional licensing requirements.

Richard Lambert, chief executive of the NLA, said: “The Government needs to look at the impact these policies will have on the PRS [private rented sector]. More and more people are relying on this sector for a home, so it is vital that landlords not only provide a high standard of accommodation, but are incentivised to do so by the prospects of a reasonable return on investment.”

Bypass the tax

With the majority of landlords still planning on continuing to maintain their existing portfolios, and others choosing to diversify and increase their portfolios in up and coming buy-to-let locations across the UK, such as in the north, the sector is proving resilient to the latest difficulties.

Landlords seeking to find ways around issues such as extra tax can run their portfolios through a limited company structure, and research from banking provider Kent Reliance has revealed that around 70% of new buy-to-let mortgage applications are now from limited companies as opposed to individuals. This enables landlords to continue to claim tax relief on mortgage interest, bypassing the Section 24 regulation.

John Eastgate, sales and marketing director at lender One Savings Bank, believes that this trend will rise as the tax relief is gradually phased out and more non-professional landlords begin to realise the full implications of the change.

He said: “The first moment of truth will come in January 2019 when they have to pay their tax bills to the end of April 2018. That’s when they will realise they have less of a tax offset on their rental income than they had before. It will get progressively more difficult for them.”

Highgrove Mews

High Net Yield Freehold Houses

  • Commutable to London (27 mins to central Paddington station)
  • Rental demand extremely strong with large industry presence in Reading
  • Freehold with 4% net yield

£284,955 - £457,000

St Petersgate – Stockport Manchester

New Launch - Stockport Manchester, apartments from £160,000

  • Discounted launch prices from £160,000
  • Excellent transport links with 3 trains per hour to London Euston and only 9 mins journey to Manchester Piccadilly
  • Experienced development team

Assured Rent Housing Association Leases

Assured Rent Housing Association Leases

  • Assured rent & no rental voids
  • Tenant damage cover & newly refurbished inline with requirements of a corporate sitting tenant
  • Free property and lettings management

From £62,000

Emerging Birmingham Commuter Town With Properties From Just £104,000

The emerging Birmingham commuter town where properties are selling in an average of just 24 days

  • A collection of 62 two bedroom apartments and 28 one bedroom apartments.
  • DE14 is one of the fastest selling postcodes in the West Midlands.
  • 23 minute train journey into Birmingham New Street Station.

Properties from £104,000

Mill, Stockport

The Northwest's emerging property hotspot

  • Discounted off-plan 2-bed prices from £162,000
  • Completion date - Q4 2021
  • Rental yields - 6% plus

Discounted off-plan 2-bed prices from £162,000

South Central – Birmingham City Centre Apartments

Highly anticipated 28 storey launch in Birmingham City Centre with an impressive roof garden and communal facilities.

  • 154 units across 28 storeys
  • Residential multi-media community room, gym, roof garden and sky cinema
  • Excellent future connectivity via the metro system to other key transport hubs and locations around the city

from £205,800


Talk to us

Speak to our UK property experts today: 

+44 (0) 333 123 0320

Open from 9am-6pm GMT

+852 9865 4446

Open from 9am-6pm HKT

Stamp Duty Calculator


Unlock members only investment opportunities and full development details. Join now – it’s free, quick and easy.


Not a member? Sign up for free

One in five UK landlords will reduce property portfolios in 2018

One in five UK landlords will reduce property portfolios in 2018


By submitting your details via this online form you agree to be contacted via email/phone/SMS by Direct Marketplace Ltd t/a BuyAssociation in relation to property investment and property developments . We do not share your personal details with third parties.  To view our full Privacy Policy click here.