HMRC study reveals shocking number of landlords ready to quit

A recent government survey conducted by HMRC reveals significant challenges in the private rental sector. The study found that a quarter of landlords plan to sell properties in the next 12 months, reflecting widespread financial difficulties. Most landlords are small-scale, earning modest income from renting, with 63% making less than £20,000 annually.

The research, conducted by Ipsos, examined investment behavior, tax management, and property ownership trends. It highlighted that most landlords own a small number of properties, predominantly in the South East and London. Many entered the market as an investment, though a significant proportion inherited or originally lived in their properties.

Despite long-term confidence in the housing market, 24% of landlords expect to reduce their portfolios in the next year, with this figure rising to 33% over five years. Taxation remains a challenge, with nearly half using accountants due to complex and frequently changing tax rules. Additionally, 63% of landlords rely on agents to manage their rental properties.