Half a million buy to let properties could be dumped on the housing market in the next 12 months, potentially driving down house prices as landlords move to avoid a crackdown by George Osborne.
The Chancellor has unveiled an end to many of the tax breaks offered to landlords and punishing stamp duty penalties on buy to let purchases in a bid to free up the market for first time buyers.
And the National Landlords Association (NLA) have now forecast the sell off could continue with an extra 100,000 properties coming onto the market every year until 2021.
Richard Lambert, Chief Executive Officer of the National Landlords Association, said: ‘Two speeches from the Chancellor in 2015 have led to a crisis in confidence greater than when all but a few BTL products were immediately withdrawn from the market following the 2007 financial crash.
‘Up to half a million properties could come onto the market as a result of the Summer Budget and Autumn Statement, which the Chancellor will no doubt deem a success.
‘But there is no guarantee that these will be the one or two-bedroom flats or small houses that will appeal to first time buyers, especially as landlords are more likely to offload less desirable stock in less desirable areas.
‘We’ve always said that Mr Osborne is blinded to the impact of his decisions by his commitment to homeownership.
‘He may have intended to focus on the small-scale part-time investor, but it’s the larger and more professional landlords who will be hit worst by cuts to mortgage tax relief and increases to stamp duty, and who appear most likely to leave the sector.
‘What happens to the people these landlords house if they still can’t buy and there are fewer and fewer properties available to rent?’
Source: Daily Mail