Blog Post

Is this the big sell off?

Publish Date: 21 February 2023

By Jade Shrubsole

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Further reading

SVA auctions hang up the gavel for the final time!

Leaning tower of Rotherhithe is going up for auction!

Is this the big sell off?

You will see in our February newsletter that lots offered has again increased and shows in January to be up 74% higher than the previous year. So we ask the question; why is the number of lots being offered up so high in January ‘23?

Could this be down to the pressures towards landlords with mortgages due to renew with the ever-rising interest and mortgage rates?

Are the new legislations causing additional pressures to sell right now?

Capital gains tax is changing the current tax-free allowance for capital gains tax is £12,300 person – but this is changing from April 2023. Instead, the new allowance will be £6,000 before reducing to £3,000 from April 2024. This would see some landlords paying more capital gains tax if they were to sell in the new tax year!

Landlords face financial strain with interest rates rising especially if mortgages are due renewal with restricted choice when refinancing, they either have to stay with the existing lender, reduce the loan or increase the rent… or perhaps sell!

It’s not just residential landlords being affected from 1st April 2023, all commercially rented properties must have a minimum energy performance rating of ‘E’ or above. Again, another factor possibly forcing landlords to sell up.

However, could this bring new opportunities for new investors picking up bargains from these over stretched or frustrated landlords? It will be interesting to keep an eye on the market over the coming months especially as we enter the new tax year.

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