CEO of Octane Capital, Jonathan Samuels, has issued a warning to the new Labour Government, highlighting that a continued attack on the nation’s buy-to-let (BTL) landlords could push the current rental crisis beyond repair.
With Labour planning a Capital Gains Tax (CGT) change for landlords in the Autumn Statement, Octane Capital commissioned a survey of UK landlords to gauge sentiment within the sector.
The survey found that 66% had already reduced the size of their investment portfolio in the past year, with reduced profitability due to previous legislative changes cited as the primary reason.
The proposed rental market reform, which includes the ban to Section 21, also placed highly along with the inevitable increase in age, as many approach retirement.
52% stated that when it came to their investment into the rental market, they felt less confident under the Labour Government, and 75% were concerned that the current Government might equalise CGT in line with current income tax thresholds.
If this change is implemented, 58% said that it would spur them to reduce the size of their BTL portfolio.
Additionally, 30% planned to reduce their portfolio size anyway, with a reduction in profitability again cited as the driving factor.
Jonathan Samuels, CEO of Octane Capital, said: “It seems that our new Labour Government is picking up where its predecessors left off within the rental market landscape, driving legislative changes designed to deter landlords from the sector.
“It’s quite worrying to see that such a large proportion have reduced their portfolio size over the last year, with more planning to do so should the proposed changes to capital gains tax come to fruition.
“A tenant-first approach is all well and good but the key factor driving the current rental crisis is the lack of available stock and by further penalising landlords, Labour are set to push the current crisis to breaking point.”
He concluded: “Raising rental market standards is an admirable endeavour, but without the homes themselves, rental prices will continue to spiral and it’s tenants that will pay the price, either financially or otherwise.”
