Two thirds of buy-to-let (BTL) landlords (66%) are not intending to sell any of their property in the next 12 months, new research from Landbay has indicated.

The other third (34%) are thinking of selling but only one in 10 of them said they would sell all of their property, with the main reason being that property investment is no longer financially viable.

However, Landbay found that 90% of landlords looking to sell said they only want to sell some of their properties, with 15% of those also intending to buy as they are restructuring their portfolios.

According to the BTL lender’s findings, there is a mixed picture in the regions with half of landlords in London saying they want to sell some property. In the South of England, 29% of landlords intend to sell, while in the North it is 25%, and in the Midlands the figure sits at 22%.

The main reason for selling, cited by 65% of landlords, was rising interest rates, a figure up significantly from 45% of landlords a year ago. Meanwhile, 30% said the rent is not covering their mortgage costs, compared to 22% in October 2022.

Landbay suggested that the rises in these percentages is not surprising, given that Bank of England base rate was 2.25% a year ago and has since climbed to 5.25%.

Landlord taxation was also cited as a reason to dispose of property for 40% of respondents, while 25% pointed to the lowering of Capital Gains Tax.

“Our survey found that one in three landlords are thinking of selling some of their property but not all of it,” said business development director at Landbay, Rob Stanton.

“They intend to stay in the market but are trimming their portfolios and some are reorganising as they both buy and sell property. Higher costs are typically why landlords want to sell, not just interest rates but taxation is also an issue for some.

“On the positive side, two thirds of landlords have no intention of selling and 36% of those are looking to buy property. The market is changing and landlords who see opportunities are taking them while others are rethinking their strategy.”

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