The UK property market is seeing a sharp increase in landlords selling their rental properties, according to data from Rightmove. This trend is likely driven by fears of a potential capital gains tax (CGT) rise in the upcoming budget.
In September, 18% of homes listed for sale had previously been rental properties, the highest proportion since Rightmove began tracking this data in 2010. This is up from 8% in 2010 and 15% in 2021.
The CGT rate, currently up to 24%, could rise to 39%, prompting many landlords to sell. Additionally, tougher energy performance certificate (EPC) rules may be influencing decisions to exit the rental market.
However, landlords who remain are benefitting from record-high rents. Rightmove reports average rents across Great Britain, excluding London, reached £1,344 per month, while in London, the average is £2,694. The Office for National Statistics (ONS) confirms that private rents in the UK have risen by 8.4% over the past year, with significant increases in England, Wales, and Scotland.
With fewer rental properties available and strong tenant demand, buy-to-let (BTL) investors could see higher rental yields, making it an attractive time to stay in the market.
For landlords looking to invest further, we offer green finance options to improve EPC ratings. This not only helps meet new regulations but can also make properties more energy-efficient and appealing to tenants, while also contributing to long-term rental value growth.
Source: The Guardian