Up to 15% of landlords are mulling selling up this year due to the rise in mortgage interest rates, according to new research from property tax consultant Cornerstone.
This is around three times the number of two years ago, when interest rates were close to zero and mortgage costs much lower.
David Hannah, chairman of Cornerstone, said: “Many of these landlords took out mortgages on buy-to-let schemes during a period of sustained low interest rates. Fast forward to 2023, and the pressure currently facing landlords is simply too much.”
Areas still doing well include the North of England, with landlords now buying there instead of in London, said Hannah.
“We are generally seeing an exodus of landlords from the capital and South East, looking towards the North East of England instead.
“It’s a region that’s seen the highest growth in property prices in the last twelve months, with many seeing it as a much safer investment than the capital.”