Accidental landlords on the decline
The proportion of homes let by accidental landlords has fallen according to the Hamptons International Monthly Lettings Index.
The number of homes let by accidental landlords fell to 7.1% in 2019 which is the lowest level in five years.
This research comes as changes set to be introduced in April 2020 will increase the amount of tax some landlords will have to pay if they sell.
Aneisha Beveridge, head of research at Hamptons International, said: “Despite a weaker sales market, which tends to encourage accidental landlords, the proportion of homes to let having previously been listed for sale has fallen for the first time in five years.
“The tax changes being introduced in April 2020 will increase the capital gains tax bill for some accidental landlords who choose to sell after that date.
“Great Britain’s most expensive regions and where prices have risen the most, recorded the biggest fall in accidental landlords.
“This is unsurprising given that landlords in these areas will have seen the greatest gains, which are likely to exceed the annual capital gains tax allowance, and therefore could see their tax bills rise the most.”
Every region recorded a fall in the proportion of homes let by accidental landlords, with London seeing the biggest drop despite being the ‘accidental landlord capital’ of the country.
In 2019 thus far 10.1% of homes listed to rent in London had been up for sale during the previous six months.
Meanwhile Scotland (-0.4%) and Wales (-0.3%) saw the smallest changes to the proportion of homes let by accidental landlords.
The proportion of homes that came onto the rental market having been listed to sell within the previous six months in the Great Britain peaked at 8.6% in 2018.