The poll of 800 landlords found that 82 per cent are not planning on adding to their portfolios this year, while just one in ten are explicitly looking to purchase a new investment property.
Falling rental yields are playing a part in the keenness to sell from landlords, with 35 per cent reporting a decrease in their yields last year. A fifth of landlords reported a decrease of up to five per cent, while nine per cent confirmed a fall of between five and ten per cent.
More than a quarter of landlords expect this to continue in 2020, with almost a fifth predicting a fall of up to five per cent and a further six per cent forecasting a drop of between five and ten per cent.
Despite this, 52 per cent expect their yields to grow this year.
Bea Montoya, chief operating officer at Simply Business, said tax increases introduced by the government were proving counterproductive for landlords, while the ongoing political and economic uncertainty was damaging confidence about staying in the market.
She continued: “Any landlord looking to sell up should make sure they understand the complexities surrounding buy-to-let sales, particularly if the property is occupied. Any tenants should be made aware of plans to sell as early as possible, and given reassurance their tenancy still stands.”
