Every fifth homeowner plans to sell the property

Despite the fact that the demand for rental residential property in the UK continues to grow, every fifth homeowner in the UK, plans to sell at least one property from your portfolio within the next 12 months. About 22% want to sell, at the same time, 18% plan to buy an additional item to add to the portfolio.

These are the data given by the Homeowners ‘ Association of great Britain (RLA), which were obtained in the survey of about 3000 owners of real estate.

According to the data, over the past six months, the proportion of landlords who have built up their portfolios, decreased by 7% and the percentage of homeowners who reduced the size of its portfolio, fell by 2%.

The report also said that 33% of homeowners saw a rising demand for rentals and are faced with an imbalance of supply and demand and 47% expect a growth in rental rates for several years.

The main reason for the growth in rents will be the abolition of exemptions on mortgage payments for homeowners, which started in April and will gradually eat up the profits. The decrease in the share of portfolio of the investors is also associated with changes in tax policy. Tax policy changes has discouraged many investors and they are trying to balance your portfolio to maintain profits.

Almost every third homeowner said he tried to evict its homeowners over the last 12 months. And 60% of them were for arrears of rent. The average monthly income of the landlord is £1000.

The report stresses that if tax policy will not change, the situation with the imbalance of demand over supply may deteriorate and that prices will rise even more. The report concludes that political and economic upheaval have a negative impact on the confidence of homeowners and the need to revise the tax rules to market that will satisfy all parties.

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® Alice Morgan. 15.08.2017 G.