London Landlord Home Sales Plummet as Taxes Slash Returns
- Proportion of homes bought by investors falls to 12 percent
- Stamp duty increase, tax relief changes reduce landlord demand
Automobiles sit in the streets outside rows of semi-detached residential housing in this aerial photograph taken over London, U.K., on Tuesday, June 16, 2015. About 32,000 new homes a year are expected to be completed in London for the next five years, about 10,000 less annually than London Mayor Boris Johnson's target, broker Savills Plc said in March.
Photographer: Matthew Lloyd/BloombergJennifer Pickford, a 39-year-old owner of four London rental properties, is not only avoiding purchasing more -- she’s considering selling the ones she has. She isn’t alone.
The proportion of homes bought to rent out in the capital tumbled after an additional 3 percent tax on second-home purchases was introduced in April 2016. Now landlords are facing a second hit with a reduction in tax relief for rental income introduced last month.