Any landlord looking to sell up should make sure they understand the complexities surrounding buy-to-let sales, particularly if the property is occupied.
Rents to rise in 2020 say letting agents
A survey, by industry body ARLA Propertymark, has revealed that 84% of letting agents believe rents will rise this year - up from 65% last year.
According to the research, the agents attribute the rise to increased demand for rental properties (61%) and a decline in the number of landlords in the sector (68%).
David Cox, chief executive of ARLA Propertymark, said: “For far too long, successive governments of all political persuasions have passed significant amounts of complex legislation for landlords.
“Looking ahead to 2020, we hope the government recognises the importance of increasing supply for tenants and uses it as an opportunity to make the market more attractive for landlords. This will encourage more landlords back into the market as well as ensure that tenants, including those who are most vulnerable, are not at a disadvantage in being able to find a suitable and affordable home to rent.”
The results come as a separate survey, by landlord insurance provider, Simply Business, found that 26% of landlords plan to sell one or more of their rental properties in 2020, with 82% saying they do not plan on purchasing additional homes for rent.
The top reasons given by the 800 respondents are tax increases and government legislation, such as changes in licensing for houses in multiple occupation (HMOs) and the tenant fees ban.
But Bea Montoya, chief operating officer at Simply Business, warned landlords to be aware of the implications of selling a rental property: “Any landlord looking to sell up should make sure they understand the complexities surrounding buy-to-let sales, particularly if the property is occupied. Any tenants should be made aware of plans to sell as early as possible and given reassurance their tenancy still stands.
“When it comes to selling, landlords need to understand any tax implications involved, such as capital gains tax. If the property is sold for more than it was paid for, there will be a capital gains tax liability.”
Read more about rent rises in Property Wire
and landlords leaving the sector in Landlord Today