As a person trying to rent at the moment, I’m finding the competition for every property near-on impossible. In the area I’m looking, as soon as a flat lands on Rightmove or Zoopla, someone else has already snapped it up.
I’ve been reading that increasing numbers of buy-to-let landlords have been selling up meaning there are fewer homes for renters, which is causing rents to rise.
But I don’t understand how this makes any sense. If landlords are selling up, surely these homes are either being purchased by new landlords or by first-time buyers and therefore should be taking some of the demand out of the rental market?

The demand supply conundrum: Landlords are selling while demand from renters is growing – wo where are all these properties going?
Ed Magnus of This is Money replies: It has been widely reported that buy-to-let landlords have been gradually exiting the market for some time now.
Since 2016, almost a quarter of a million more homes have been sold by landlords than have been purchased, according to research by estate agent Hamptons, largely driven by investors sellling up due to tax hikes and increasing regulation.
The English Housing Survey suggests a more dramatic fall in the number homes across the private rental market.
Between 2018 and 2021 it estimates that the number of privately rented homes fell from 4.8 million to 4.3 million.
There is now a chronic imbalance between the supply of homes to rent and the level of demand from renters.
> Ten tips for buy-to-let: Read our essential guide for landlords
The latest English Housing Survey estimates that roughly 500,000 homes may have been lost from the private rented market since 2018.
Demand from renters is currently 78 per cent above what is normal, according to Zoopla, while it says the total supply of rental homes is 37 per cent below normal.
This is echoed in the latest market report by Propertymark, which is the UK’s leading membership body for letting agents.
Propertymark says that the supply of properties cannot match rising demand with an average of 11 prospective tenants registering for every available property at present.
With competition increasingly fierce between renters, rents have been rising at quite a pace in recent years.
Over the past 12 months alone, average rents rose by 10.2 per cent, according to the latest HomeLet Rental Index.
The index is based on around one million references processed each year on behalf of letting agents. It estimates that the average rent for a new tenancy in the UK now stands at £1,175 per month.

Perhaps unsurprisingly, rental affordability for a single earner is at its worst for over a decade, according to Zoopla’s analysis.
The situation looks set to get worse this year, with more landlords planning to sell.
One in three landlords are planning to cut the size of their portfolio this year, according to a poll by the National Residential Landlords Association, which marks the highest level of planned disinvestment seen in more than six years.
Just 9 per cent of landlords said they plan to increase the size of their portfolio over the next 12 months, down from 14 per cent who said the same the year before.
However, the question remains, if so many landlords are exiting, why are first-time buyers, who might otherwise be renters, not prospering and and countering this demand and supply imbalance.
To answer this question, we spoke to Chris Norris, policy director at the National Residential Landlords Association, Nathan Emerson, chief executive of letting and estate agent body, Propertymark, and Henry Pryor, a professional buying agent and renowned property expert.
Year | Number of landlord purchases | Number of landlord sales | Net gain/loss |
---|---|---|---|
2013 | 161,682 | 105,924 | 55,758 |
2014 | 179,961 | 149,801 | 30,160 |
2015 | 192,842 | 177,066 | 15,776 |
2016 | 192,864 | 195,505 | -2,641 |
2017 | 143,762 | 185,338 | -41,576 |
2018 | 127,631 | 180,871 | -53,240 |
2019 | 122,086 | 160,263 | -38,177 |
2020 | 101,122 | 132,002 | -30,879 |
2021 | 172,923 | 201,546 | -28,624 |
2022 | 167,500 | 205,000 | -37,500 |
Source: Hamptons & HMRC |
Why is there a lack of rental homes?
Nathan Emerson says: The landscape for those who rent out homes has and is changing significantly. There is new legislation and with it new costs. This is as well as tax changes and interest rate rises.
Because of this, a lot of landlords have sold properties but not as many new investors are coming into the market.
This leaves the market with a deficit which is actually most widely felt by tenants. The English Housing Survey noted a loss of 500,000 homes from the private rented market since 2018.
If all of those properties were single occupancy that’s 500,000 tenants that are being displaced, but of course we know a lot of those households would have been couples or families so the number would be comfortably double.
Homeowner properties are more likely to be under-occupied
Chris Norris says: It’s a complicated picture. Of course, if a property moves from the private rental sector into owner-occupation it will meet the demand of the household making the purchase and creating a home.
Properties leaving the private rental sector leave a gap where the overwhelming majority of new households tend to form
The issue with properties leaving the private rental sector is not that they disappear from the housing mix altogether, rather that they leave a gap in the housing sector where the overwhelming majority of new households tend to form.
Additionally, properties in the private rental sector are far more likely to be occupied by more than one household.
By contrast owner-occupiers are far more likely to be made up of one household, or even under-occupied properties.
This means that there can be a net reduction in available dwellings when stock transfers from the private rental sector to owner-occupation.
According to the most recent English Housing Survey, over half (53 per cent) of homeowner properties were classed as being under-occupied compared to 15 per cent of private rented properties.

Homes in the private rental sector are far more likely to be occupied by more than one household.
Some landlord sales become short-term lets
Chris Norris says: It is worth noting that not all properties sold by landlords are sold to owner-occupiers.
Increasingly in recent years, as it has become more difficult to break even as a residential landlord, properties have been sold on to short-term accommodation providers, who offer holiday lets or serviced apartments rather than long=term homes to rent.
Equally, many multi-dwelling properties, or lower value homes, in high demand areas have been sold for development.
Properties have been sold on to short-term accommodation providers who offer holiday lets or serviced apartments rather than long term homes
This removes relatively affordable properties from the market in exchange for larger single dwellings or premium homes.
Finally, logical as it is, the questions assume that first, there are sufficient first-time buyers able and willing to buy the properties entering the market; and second, that the properties are of a type suitable for first time buyers.
In many markets, it is the older and larger stock which is proving unviable.
This is less likely to be appealing to owner-occupiers and also removes a larger number of potential units at the affordable end of the private rented sector from circulation.
In these cases, there is no real addition made to the number of properties suitable for first-time-buyers and at the same time there is a reduction in the number of dwellings available at the lower cost end of the rental market.
Henry Pryor adds: The problem is that whilst there will be buyers for any home that is sold by a landlord they are very rarely the sort of people who would be renting it currently, so whilst someone is lucky enough to get a home to buy it will reduce the stock of homes to rent and keep the demand unchanged.
That is part of what is driving rents up at present and likely to drive them even further if more landlords sell up.
Some of the homes they sell will be bought by other investors, who will rent them out, but they will pay slightly less for the properties which is why we expect house prices to fall slightly from where they are today. That’s what markets do.

Buy-to-let properties have been sold on to short-term accommodation providers who offer holiday lets or serviced apartments rather than long term homes to rent.
Nathan Emerson adds: When professionals in our industry talk about landlords selling up, our concerns are often counteracted by statements that those properties can now be bought by first time buyers.
But what about the 500,000 tenants?
This statement assumes all of those will be in a position to buy, pass affordability and to be approved by lenders.
The rental market is not just full of would-be first-time buyer
Whilst renting is a stop gap for some, the rental market is not just full of would-be first-time buyers.
In reality, the social housing market is under immense pressure and many low income families rely on the private rented sector instead.
It’s very important to remember that not everyone has the means or even the desire to own a property.
Many of those tenants displaced from a landlord sale may find themselves being placed on an ever growing waiting list for social housing, not being granted a mortgage.
To assume that all tenants are able to become purchasers overnight over simplifies the issue to a dangerous degree, and to be ignorant of the service provided by the rented sector is a huge risk to those who rely on it for a place they call home.
Some links in this article may be affiliate links. If you click on them we may earn a small commission. That helps us fund This Is Money, and keep it free to use. We do not write articles to promote products. We do not allow any commercial relationship to affect our editorial independence.
Home buyer demand plummeted 50% at end of 2022, says Zoopla… while those who did buy sought smaller homes to keep mortgage costs down
- House prices grew 6.5% over 2022, says Zoopla, following stagnant final months
- Buyer demand in January is down 23% on the five-year average
- The difference between sellers’ asking and achieved price is now around 4%
A stagnant final three months of 2022 slowed house price growth to 6.5 per cent for the year, according to Zoopla, as demand for properties plummeted 50 per cent from October to the end of December.
It marked a slowdown compared to the 8.3 per cent growth recorded in 2021, according to the property portal, as higher mortgage rates impacted buyers’ decisions.
Buyer demand in January this year is down 23 per cent compared to the five-year average, it added.

Slowing: House price inflation stalled at the end of 2022 dragging down the figure for the year
Its data suggested that buyers are negotiating harder on price, with the difference between sellers’ asking and achieved price now around 4 per cent.
Zoopla warns that if the gap between asking and sale price continues to widen, sellers will feel under pressure to further reduce their asking prices, exacerbating the downward trend.
The research tallies with figures from the Bank of England that show demand for new mortgages fell by 75 per cent at the end of 2022, as homeowners were hit by increased interest rates and the rising cost of living.
Regionally, Zoopla said demand and sales remained strong in the North East of England, Scotland and Wales where homes are priced below the national average.
Market conditions remain weaker in the South East, South West and the East Midlands, where prices are higher or have grown rapidly over the last two years, adding to affordability pressures.
Richard Donnell, executive director of research at Zoopla said, ‘The start to 2023 will be more of a slow burn than in recent years. A portion of households hoping to move in the coming year will be waiting to see whether house prices start to fall more quickly in Q1, as well as how much further mortgage rates are likely to fall back.
‘Mortgage rates for new business are now generally below 5 per cent and look set to remain in the 4 to 5 per cent range in 2023. This is a much better prospect than the 6 per cent to 6.5 per cent levels at the end of last year but buyers will remain cautious in the next few weeks.’

Small is beautiful: Demand for smaller properties has increased as buyers look to move back to cities and aim to find the best value for their money
The number of homes for sale has also increased, according to Zoopla.
There are now an average of 23 homes for sale per estate agent, up from a low of just 14 homes in early 2022. However, the level remains 6 per cent below the five year average.
And data from Nationwide suggests first-time buyer homes are the least affordable they have been since 2008, as the average mortgage payments now eat up 39 per cent of salaries.

Activity in the housing market stalled in late 2022, but has picked up since the start of 2023
At the same time buyers are opting for smaller properties with 27 per cent of new buyers looking for one and two bed flats, a 22 per cent increase from a year ago. However, three-bed homes remain the most in demand property across the country.
The difference in pricing between flats and houses is stark in many areas, supporting this shift in demand as buyers at the start of the property ladder look for better value for money.
Outside London, the average 2-bed flat is listed for sale on Zoopla at £196,000, which is almost £100,000 cheaper than an average 3-bed home (£293,000). One-bed flats are £150,000 cheaper.
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Foxtons warns of ‘challenging’ months ahead as inflation and interest rate hikes weaken property transactions
- The firm said its annual turnover for 2022 are set to exceed market forecasts
- Foxtons boss: ‘The economic outlook for the year ahead remains uncertain’
- Mortgage rates escalated in the aftermath of a controversial ‘mini-budget’
Foxtons has warned of a ‘more challenging’ trading environment in the months ahead, as it reported a strong market-beating performance for 2022.
The estate agency told investors on Thursday that rising interest rates, inflation, and harsher economic conditions would lead to a more ‘subdued’ sales market in the first half of this year.
Britain’s property sector has slowed since mortgage rates spriralled in the aftermath of the controversial autumn ‘mini-budget,’ which caused chaos across the markets.

Outlook: Foxtons said that rising interest rates, inflation, and harsher economic conditions would lead to a more ‘subdued’ sales market in the first half of this year
According to the banking group Halifax, the estimated number of first-time buyers fell by 11 per cent last year, while average house prices have declined for the last four consecutive calendar months.
However, Foxtons said its annual turnover and adjusted operating profit for 2022 are set to exceed market forecasts, with the former increasing by around 11 per cent to £140million thanks to growth in its lettings, sales and financial services divisions.
The London-focused firm attributed much of the earnings boost to the divestment of the loss-making sales portfolio of Douglas & Gordon, having only acquired it the previous year.
It held onto and integrated D&G’s rental arm and spent £10.6million purchasing two estate agents – IMM Properties and Stones Residential- with around 2,500 tenancies three months later, in line with a strategy to buy up lettings businesses.
Foxtons said lettings revenues are anticipated to remain resilient going forwards despite the broader economic backdrop.
Rents in England’s capital have soared to record levels amid surging mortgage costs, skyrocketing energy bills, and a return of office workers and students after Covid-19 restrictions were relaxed.
Prices have also been pushed up by a slump in the availability of rental properties as landlords exited the market following the introduction of new taxes, such as stamp duty changes on buy-to-let homes, and changes to tenancy regulations.
‘Much has been achieved in a short period, and it is great to see some of the team’s hard work reflected in the 2022 results,’ said Guy Gittins, who became Foxton’s chief executive last September.
‘The economic outlook for the year ahead remains uncertain, but we have a growing portfolio of non-cyclical revenues, and a refreshed operational strategy to rebuild Foxtons’ estate agency DNA and return the business to its position as London’s go-to estate agency.’
Gittins succeeded Nick Budden, who faced a major shareholder rebellion in 2021 over his compensation package after the company received almost £7million in publicly-funded furlough payments and business rates relief.
Foxtons also raised £22million from investors during the early stages of the Covid-19 pandemic when lockdown restrictions led to a collapse in property transactions.
Sales rebounded significantly after the first national lockdown ended as Britons sought more spacious homes, and demand for mortgages was spurred by low interest rates and the introduction of a temporary stamp duty holiday.
Foxtons Group shares were 0.7 per cent lower at 37.75p on late Thursday afternoon, yet they have still expanded by around a quarter so far this year.
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As house prices begin to go down according to many measures, the property market is at an impasse.
There are increasing numbers of sellers setting unrealistic asking prices, perhaps buoyed by higher valuations received in months past. And meanwhile, prospective buyers are standing by and waiting for the cost of a home to fall.
Seven in 10 estate agents say home sellers are being unrealistic about what their properties are worth, according to estate agent membership body, Propertymark.
Agents say sellers are overvaluing their homes, either because they think they have the best house on the street, or because they want to sell at a price which will enable their next move.
It means many are listing for more than their property is actually worth.

High expectations: 71 per cent of estate agents believe sellers are being unrealistic in how they price their properties, according to Propertymark
Sellers might get away with that in a hot market, but at the moment demand among those buying homes is on the wane.
According to Zoopla, home buyer demand fell by 50 per cent in the final three months of last year. The number of sales agreed was also down by 28 per cent year-on-year.
This chimes with what estate agents have been reporting to Propertymark.
Its latest figures show the number of prospective homebuyers registering with agents fell from 2.5 per available property in December 2021, to 1.4 per property in December 2022. That’s a 45 per cent decline year-on-year.
Propertymark also reported that the average number of viewings per property fell by 71 per cent between April and December 2022.
This is not stopping sellers from listing their properties for sale, however. Propertymark found that estate agents saw a fairly steady stream of available properties over 2022, with no change recorded year-on-year between December 2021 and December 2022.
The year 2022 started as a seller’s market, and ended the year back to normality as a buyer’s market
Nathan Emerson, Propertymark
Nathan Emerson, chief executive of Propertymark said: ‘The largest shift we have seen in the sales market is prices agreed, compared to normal asking prices.
‘The year 2022 started as a seller’s market, and ended the year back to normality as a buyer’s market.’
Emerson urged sellers not to pay too much attention to how much other homes in their area were being listed for, as those homes may have been lingering on the market, or could fail to actually sell for the advertised price.
‘The best price is usually achieved in the first four to six weeks of marketing, so we urge sellers not to compare their property to other homes on the market which may not have sold yet, and ensure they receive valuations from a qualified and accredited estate agent,’ he said.
When will sellers accept the new reality?
Higher mortgage rates combined with wider economic uncertainty have forced many Britons to place their home-buying or moving plans on hold.
Demand for mortgages to purchase a home fell sharply in the final three months of last year, according to data from the Bank of England.
It found that new mortgages for property purchases dropped 75 per cent compared with the previous three months.
Starved of buyers, sellers are having to come to terms with the reality that their house price may no longer be worth what it was six months ago.

Mortgage shock: ONS and Bank of England data shows the rapid rise of mortgage rates over the past year
House price indices are beginning to suggest that prices are turning. Halifax and Nationwide both recorded consecutive falls in the final months of last year. However, the data tends to lag behind what is actually happening in real time.
Consequently, it may take time for many sellers to accept the reality of what their home is now worth.
Henry Pryor, professional buying agent says: ‘Usually about 1.2million homes are sold every year, but I am expecting a few as 800,000 this year as sellers sit on their hands waiting to see if they can hold out for the price they had hoped they would have got last year.
‘The housing market is like a supertanker – it takes a long time to change direction or speed, and most of 2023 will be taken up with sellers holding out for last year’s price before realising that what they want to move to has fallen in value just like theirs.
‘So, I’m not yet seeing a Mexican standoff, but I expect to. At the moment, it’s just too early, but the penny will drop by the summer.
‘As always some will get it sooner and some will take until Christmas. Others will cling on for too long as some estate agents try to buy new business by being optimistic for longer.’
How to sell your home in 2023
Sellers need to be careful how they price their property, according to experts.
It can be tempting to match what other properties in the area are on the market for, but the advice is to speak to local estate agents to ensure the house goes on the market for a price that will attract interest, rather than one that’s purely speculative.
‘Sellers need to listen to their agents’ advice and price accordingly,’ says Henry Pryor. ‘The best are still selling and selling well, but you are likely to be punished if you are over-ambitious. Price is what you ask. Value is what you get.
He adds: ‘Sellers would do well to remember that an asking price is not a statement of value. It’s part of the marketing, there to attract potential purchasers to view.
‘Don’t judge an offer with reference to the asking price. If you get more than the asking price, then it did its job well.’
Rob Dix, co-founder of the property forum, Property Hub, suggests sellers might be wise to hold firm or delay selling until later in the year.
‘The market isn’t bad enough that the big sellers are dropping prices,’ says Dix. ‘If you look at the major housebuilders in the UK, they’re not talking about reducing prices.
‘They’re sticking to their guns and carrying on selling at the same price point, so sellers should feel boosted by this.
‘If you can afford to hold off selling in the first quarter, I can see things improving throughout the year.
‘You’re probably going to do better in the second and third quarters of the year than you are now.’
Know what’s happening in your area
It’s worth understanding what buyer demand and house prices are doing in your local area, rather than focusing on the country as a whole.
House prices are not determined by a single market, but rather a plethora of markets across the UK, and the experience can be different right down to the very street or road you live on.
The property market in the UK’s more expensive areas can be less attractive when buyers budgets are constrained – as they are now by rising mortgage rates.
Liana Loporto-Browne, a London based estate agent, said a four-bed terraced house had been unsuccessfully marketed by several other agents before it landed with her.
The original asking price of the property was £1,150,000 and had already been on the market for several months before it was reduced to £950,000 by her agency, selling in the same month for £925,000.

Grey skies in the housing market: Savills expects double-digit house price falls in 2023, in a year when discretionary movers will sit on their hands
However, quieter and more affordable areas such as the North West are holding their value, according to Propertymark.
Bolton based estate agents Miller Metcalfe reports that 99.5 per cent of its properties are being sold at the asking price.
It sold a two-bedroom terrace house in Bury, Lancashire at the initial asking price of £127,000 in early January, just three days after it went on the market.
However, it conceded that this month’s sales thus far have on average taken 16 per cent longer from instruction to sale agreed compared to last year.

Cooling market: Last month, seven in ten estate agents saw most sales agreed at below asking price, according to industry body Propertymark
Zoopla estimates that close to half of all UK homes increased in value over the final three months of last year, highlighting differences in trends between local markets.
Richard Donnell, executive director at Zoopla said: ‘The profile of gains and losses varies right across the country, knocking any notion of a single market that moves in unison across the country.
‘Housing markets vary by geography and price band. The value of a home is important in unlocking that next home moving decision.
‘While the headlines might talk of UK house price falls in 2023, each home will have its own trajectory – so speaking to an agent or tracking your home value online are ways households can stay in touch with the value of their largest asset.’
What’s the advice for buyers?
Most predictions for 2023 have house prices falling anywhere between 5 and 20 per cent.
The advice to buyers is therefore simple – good things come to those that wait. However, that doesn’t mean putting their lives on hold in order to try and time the market.
‘My advice to buyers is to be patient,’ says Henry Pryor, ‘if you have to buy now then you will have to pay more to do so as it will take time for sellers to understand the new norm.
‘If you want to move later in 2023, start looking now and when you find the right thing, buy it if you can afford it.
‘It may be cheaper in 12 months’ time, but I expect that in three years time it will be worth what you paid for it.
‘Don’t put your life on hold. Judging the top or the bottom of a market is usually down to luck, not expertise.’
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UK house prices registered the most widespread falls in 13 years last month as buyer demand and sales activity shrank more sharply than expected in the face of higher borrowing costs and the risk of a recession, a closely-watched survey shows.
The Royal Institution of Chartered Surveyors’ house price balance, which measures the difference between the percentage of surveyors seeing rises and falls in house prices, slumped to -42 in December, down from -26 the previous month.
December’s figure was, according to Reuters, the lowest since October 2010 and below the -30 that economists had forecast.
Prices fell across all English regions with East Anglia and the South East reporting the sharpest net balance of declines, according to the Rics.

House prices: East Anglia and the South East of England saw the biggest house drops last month, the RICS said
Mark Hunter, of Grice and Hunter surveyors and estate agents in Doncaster, said: ‘Due to the seasonal downturn there is very little activity and we wait to see what transpires from mid-January onwards.’
Agreed sales continued to fall in December, the Rics said, while new buyer enquiries dipped marginally. The number of people putting their house up for sale was also the lowest since September 2021, the Rics added.
Looking at the year ahead, the balance for price expectations edged down further from November.
Simon Rubinsohn, chief economist at the Rics, said; ‘The latest Rics Residential Survey highlights the emerging challenges in the housing market as new buyers grapple with more costly finance terms and uncertainty over the outlook for the economy.
‘This is reflected in forward-looking Rics indicators around both prices and activity.
‘However, some signs of an easing in inflation pressures more generally could provide a chink of light particularly for those looking to take their first step on the property ladder.
‘Meanwhile feedback around the lettings market once again demonstrates the need for some concerted thinking about how to create a thriving sector that caters for both the private and “affordable” renter.’
Mortgage lenders including Halifax and Nationwide have both shown prices falling in monthly terms as inflation and rising interest rates squeeze prospective buyers.
Jeremy Leaf, a north London estate agent and a former Rics residential chairman, said: ‘Housing market activity dropped and sales are taking longer as buyers reclaim the balance of power due principally to the cost of living and interest rate rises.
‘Prices may soften further before mortgage costs fall despite recent modest reductions as concerns about job security increase.
‘Lack of supply means prices are unlikely to fall sharply as we have found many buyers waiting until early 2023 to see if mortgage rates settle before deciding to move.’
While property prices were reported to have fallen, rents are expected to continue to increase, the Rics said.
Demand in the rental market was set to slow further after sinking to its weakest in nearly two years last month, but fewer landlords were offering properties.
The Rics said: ‘On the back of this, near-term expectations continue to point to rents being squeezed higher, with the net balance of respondents anticipating an increase in rent remaining unchanged from last month at +42 per cent.’

Price shifts: House prices fell in every region in England last month, the RICS said

Making enquiries: New enquiries from prospective buyers fell slightly last month
According to the RICS, one of the fundamental challenges in the housing sector is the continuing lack of high-quality, affordable homes. It said: ‘This inadequate supply of housing has a direct correlation on property prices, rent and quality – which brings with it wider economic and social challenges.’
On Wednesday, figures from the Office for National Statistics revealed that average UK house prices increased by 10.3 per cent in the year to November 2022, down from 12.4 per cent in October 2022.
The average UK house price was £295,000 in November 2022, which is £28,000 higher than at the same point a year earlier, but a slight decrease from the previous month’s record high of £296,000.
Lenders reported that demand for secured lending for house purchases fell in the fourth quarter of 2022, and is expected to slip further in the current quarter, according to the Bank of England in its latest Credit Conditions Survey published today.
Some households could find it tougher to get a mortgage and other types of credit in the coming months, amid lenders’ expectations that more may default on loans.
Kylie-Ann Gatecliffe, a director at Selby-based broker, KAG Financial, said: ‘One point of concern is that lenders expect the availability of mortgages to decrease in the next quarter.’
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I rented my flat through a letting agent in August 2022. After viewing I made a conditional offer, the conditions being that the living room be repainted, cracks in the walls fixed and that the bench in the garden repaired.
This was agreed and included as a clause in the tenancy agreement. I have now been in the flat for several months, but the conditions have not been met despite many emails to the estate agent and some direct to the landlord.
In some cases, they have said they would organise repairs but no one has showed up on the agreed date.
I have now discovered an issue with damp, and problems with the common areas of the building. The boiler also stopped working soon after I moved in, and I was without hot water and heat for a month. The estate agent agreed to reduce the rent for two weeks.
I have signed up to a two year tenancy with an 18 month break clause. But given these issues, I want to end the lease and leave as soon as I can.

When our reader suggested ending the tenancy early, the letting agent said that they will still be responsible for the rent until the end of the tenancy
When I suggested this, the letting agent said that I would still be responsible for the rent until the end of the tenancy or until they found someone else.
They said I would also need to cover any shortfall if the new tenant paid less. This does not seem fair, since the landlord did not meet the conditions agreed.
The latest development is that the landlord now intends to put the property up for sale despite the fact that I can only leave after 18 months from the start of the tenancy.
For the time being I am staying put, but would be grateful for any advice about what I should do from here. Via email
Ed Magnus of This is Money replies: There will undoubtedly be many renters who empathise with your situation.
We contacted the letting agent in question, whom you have asked we keep anonymous at this stage.
Despite a number of emails and phone calls, we never received any official response.
I was advised over the phone that someone would reply, but nobody has done so. I can only assume they decided that not commenting was in their best interest.
Irrespective of the tenancy agreement, depending on how bad the damp situation is, you may be able to argue that the property is unfit for human habitation.
Nearly half a million renters report damp in their home each year, according to the English Housing Survey, making it a very common problem.
Damp can cause health problems such as respiratory issues, respiratory infections, allergies or asthma. It also has the potential to affect the immune system.
If the damp in your property is bad enough to be deemed a health risk, you could make a claim of statutory nuisance and sue the landlord for damages.
Disrepair that is harmful to health could include dampness and mould growth, according to Citizens Advice, and local authorities generally take action against landlords where there is a statutory nuisance such as this.
However, renters must also be aware that a landlord may not be accountable if the tenant is responsible for causing the disrepair by not looking after the property – for example, not consistently not using the extractor fan after having a shower.
>> Behind the scenes at Shelter’s emergency housing helpline
![The tenancy agreement included an additional clause to 'repaint and fix cracks in the living room [and] fix a broken bench in the garden'](https://ukpropertyguides.com/wp-content/uploads/2023/01/1673854733_975_My-landlord-is-in-breach-of-our-tenancy-agreement.jpg)
The tenancy agreement included an additional clause to ‘repaint and fix cracks in the living room [and] fix a broken bench in the garden’
Having looked at your contract, I can see that the contract clearly mentioned the repairs you mentioned.
It says: ‘It is hereby agreed between the Landlord and the Tenant that the Landlord will repair the cracks and repaint the walls in the living room.
‘The Landlord will also fix the broken bench in the garden prior to the start of the tenancy. This will be done at the Landlord’s own expense.’
We spoke to Christopher Clue, litigation executive at RHW solicitors for his legal advice on the matter. We also spoke to Al Mcclenahan, founder of Justice for Tenants.
Is the landlord in breach of contract?
Christopher Clue replies: Whether the landlord has broken the contract or not will be determined by whether the clause breached is a condition or a term of the agreement.
In a contract, clauses are divided up into terms or conditions. A term is a clause that is not fundamental to the contract, so if breached it would not repudiate the tenancy agreement.
On the other hand, a condition is a clause that goes to the root of the contract, and if breached, the tenant could claim that the agreement is repudiated and they are no longer bound by the agreement.
In this case, the tenant has a number of claims in relation to the disrepair of the property.

Selling up: The latest development is that the landlord now intends to put the property up for sale with tenants in situ
Upon first viewing the property, the tenant noticed that the lounge had cracks in the plasterwork and the room needed repainting.
The landlord agreed to fix these issues and this was added as a clause in the tenancy agreement.
However, the clause is drafted inadequately insofar as there is no timeframe specified for the repair works to the living room.
If the courts considered the landlord to be in breach, it is unlikely to be substantial enough to repudiate the contract.
Further, from the limited correspondence I have seen, the estate agency claims to have made some attempts to have the works undertaken which would be compliant with how the clause is drafted.
What about the broken garden bench?
Christopher Clue replies: The tenant also noted upon first viewing the property that the garden bench was broken.
This clause is much better drafted, in that the landlord was required to fix the bench prior to the commencement of the tenancy and failed to do so.
The landlord should have undertaken this repair before the tenant moved into the property.

Our reader also requested that a broken bench in the garden also be repaired
However, again, it is unlikely that this will be a sufficient breach to repudiate the tenancy agreement.
The tenant would have a claim in damages for loss of amenity in relation to the bench in the garden.
They would also have a damages claim for the cracks in the living room and potentially the state of the communal areas.
However, the damages payable for these breaches are likely to be small and therefore bringing a claim is unlikely to be worth the time or cost involved.
What about the broken boiler?
Christopher Clue replies: After moving into the property the boiler broke, and from the account of the tenant, it appears that this took an extraordinarily long time to fix.
At the time, this breach may have been sufficient to terminate the tenancy agreement.
However, the tenant has already accepted compensation for the month spent without heating and hot water.
Therefore, asserting that the tenancy is repudiated after accepting the payment and then remaining in the property, is unlikely to succeed if the matter now proceeded to court.

Our reader had to cope for a month with out central heating or hot water when the boiler broke
What about the state of the common areas?
Christopher Clue replies: The estate agent says this is not the responsibility of the landlord, but rather freeholder of the building.
However, the landlord is responsible for enforcing the contract with the freeholder.
Without a copy of the agreement with the freeholder, we are unable to identify what frequency the communal areas should be cleaned, but it would not be unreasonable to expect this to be more frequent than once every two months.
However, again this does not prevent the tenant from occupying and enjoying the property and is unlikely to give rise to the tenancy agreement being repudiated.
What about the damp?
Christopher Clue replies: Without photographs of the damp, or a surveyors report as to why it is occurring, it is unlikely that this would amount to a breach of contract.
If it doesn’t prevent use of the property, which the comments don’t seem to suggest that it does, it’s unlikely to repudiate the tenancy.
From the emails I have seen, the letting agent has instructed a contractor to visit the property to undertake remedial repairs as required within two weeks of them being notified.

Unfortunately the damp may not be severe enough to constitute a health risk
I believe it highly likely a court would find that this is reasonable behaviour.
However, if upon inspection it becomes apparent that the property has a significant damp problem, this may give rise to being able to terminate the tenancy agreement.
Under these circumstances, the tenant must also show they have not exacerbated the damp problem by keep the flat unventilated or by drying clothes indoors without opening windows.
However, in the absence of the damp being significant enough to repudiate the tenancy agreement, it is unlikely that the tenant will be able to terminate the lease without being liable for the rent until the first break date.
Al Mcclenahan replies: It is the case that most councils are particularly concerned about being the next big news case regarding damp and mould, after the tragic death of two-year old Awaab Ishak.
You can email your local council’s private rented sector housing enforcement team and make it clear there was damp when you moved into the property, the landlord is refusing to rectify it, and you are concerned about the impact it may have on your health.
There is a high chance they will inspect the property and write to the landlord or agent. This may cause the landlord to carry out the repair works.
Can the tenant withhold rent until the issues are fixed?
Christopher Clue replies: The tenant may choose to withhold rent, seeking to claim that it is withheld in lieu of any damages owed.
This is not advisable, as the landlord will then likely withhold the security deposit and begin court proceedings against the tenant to recover the rent.
Any deduction in rent should be agreed with the landlord or letting agent in advance.
What if they leave the property and stop paying rent?
Christopher Clue replies: I don’t advise they do this either. It is more than likely that the landlord would pursue the tenant for the rent.
The tenant is also liable for the landlord’s fees contractually for any litigation to recover the rent as set out in the tenancy agreement.
If they come to an agreement with the landlord and decide to leave the property, it would be wise for the tenant to obtain a checkout report and inventory.

The tenant would be bound to the agreement until the break date regardless of whether the property changes ownership, according to Christopher Clue
This will ensure that they are not pursued for any damage or disrepair that is caused after leaving, or by the landlord chancing their luck to withhold sums from the security deposit.
It sounds like there are a few issues with this property so it is important the tenant protects themselves in this regard.
What advice would you offer the tenant?
Christopher Clue replies: There is little option for the tenant to vacate before the break clause date.
However, they could attempt to negotiate with the landlord to leave early, or request a sublet.
Subletting will mean finding an alternative tenant who is then vetted by the estate agency, although the tenant would likely need to cover the agency fees to do this to entice the landlord.
However, if I were advising the landlord, I would advise against both these options due to risk and inconvenience on the basis that you have a tenant who is on the hook for the rent regardless.
Can the landlord sell the flat with the tenant in situ?
Christopher Clue replies: Yes they can. The tenant would be bound to the agreement until the break date regardless of whether the property changes ownership.
The reason for this, is that the definition of landlord in the tenancy agreement allows for the future owners to be the landlord, and this therefore acts as an alienation clause.
‘Landlord(s)’ include anyone owning an interest in the premises, whether freehold or leasehold, entitling them to possession of it upon the termination or expiry of the tenancy and anyone who later owns the premises.
If the landlord wishes to sell the property, they can either advertise it with tenants in situ or come to an arrangement with the tenant to vacate early.
However, if the tenant vacates and no alternative tenant is found, it is likely that the landlord will wait to serve a Section 21 notice two months before exchange of a sale to maximise the rental income.
In the event the tenant stays in situ, then a negotiation could be had but this is gambling with the landlord finding a buyer.
Al Mcclenahan replies: You could send a letter directly to the landlords, at their address on the contract.
You can detail the events to date and state that it would be better to resolve these issues before attempting to sell the property, as there may be a duty of disclosure to a new landlord or purchaser.
Anything that may make it harder to sell a property at full price in this environment may shock the landlords into action.
By writing directly, you bypass the agent, who may not have accurately passed on your concerns.
If the appearance of the agents causes feelings of distress because of their poor handling of the issues you have raised, you could make it clear that you would not allow the agents to enter the property and give restrictive times for potential purchasers to view the property.
You could use this position as leverage to either get out of the tenancy early or get the contractually promised repairs carried out.
You are the tenant – the same thing that means you cannot exit the contract whenever you wish is the same contractual relationship that allows you to deny access to your home.
Some links in this article may be affiliate links. If you click on them we may earn a small commission. That helps us fund This Is Money, and keep it free to use. We do not write articles to promote products. We do not allow any commercial relationship to affect our editorial independence.
Savers hoping to get on to the property ladder this year may be disheartened by the current state of the housing market.
While house prices are predicted to fall by up to 10 per cent this year, that only eradicates around two years of price inflation.
The rapid rise of mortgage rates has made homeownership more expensive for the majority who need to borrow to buy, and the Government’s flagship scheme for first time buyers – Help to Buy – ended in Autumn.

Uphill struggle: First-time buyers face many financial hurdles to get on the housing ladder. For some, shared ownership could provide a solution
But there are still options for those who need help buying their first home. One of them is shared ownership, which gives buyers the chance to own a proportion of a property and pay rent on the rest.
We have taken a look at how the scheme works, its pros and cons, and whether it can replace Help to Buy.
>> What will happen to mortgage rates in 2023?
What is shared ownership and how does it work?
Shared ownership is a home ownership option that allows you to buy a percentage share of a property, if you cannot afford the deposit or the mortgage payments on a house on the open market.
It does not mean, as the name may suggest, that you need to share your property with other individuals. Instead, you own a proportion of the home and pay rent on the rest.
Buyers will commonly purchase between 25 and 75 per cent of a property with a mortgage, and then pay rent on the remaining portion to the landlord, usually a housing association. On some properties the purchased share can be as 10 per cent.
When buying through shared ownership you still have to put down a deposit for the share that you own, as you would any other property purchase.
The amount required for a deposit will vary from property to property, but the typical shared ownership deposit is 5 per cent or 10 per cent of the share you are purchasing. This means the deposit can be much lower than what is needed to buy a home on the open market.

Shared ownership allows you to increase your equity share of the property via ‘staircasing’
For example, if you are buying a 25 per cent share of a home with a full value of £300,000, the value of your share will be £75,000. If a 5 per cent deposit was required, you would need to put down a deposit of £3,750. Buying the home in full would require a £15,000 deposit.
Once you have made your initial payment, over time you can build up the portion you own, usually in 10 per cent increments – this is called staircasing. As you do you will pay less rent as the remaining percentage reduces.
It is also likely that you will pay ground rent and monthly service charges for the communal space, as the property is likely to be commercially owned.
However, stamp duty when you move into the property can generally be deferred until your share reaches 80 per cent.
>> Could the mortgage guarantee scheme help you get on the property ladder?
What kind of home can you buy on shared ownership?
Shared ownership schemes are available on new build properties owned by housing associations, or on existing homes via shared ownership resale schemes.
There is usually a range of house sizes, apartments and bungalows on offer in an area.
If it is not a new build, the home will have been previously lived in and owned via shared ownership and is being sold under the same system.
You buy the previous owner’s share either outright or by securing a mortgage, and then pay rent on the part you don’t own.
There are also options to buy a share in a home that meets your specific needs – for example, if you have a long-term disability and need a ground floor flat.
But bear in mind there are different rules on shared ownership in different parts of the UK, so make sure you check the requirements in your region before applying.
Who can use shared ownership?
The scheme is aimed at buyers looking to get on the property ladder but who are unable to buy a home with a traditional mortgage.
While the most obvious beneficiaries are first-time buyers, it may also provide an option for separated couples looking to buy individually with the equity from their shared home.
With the rising cost of living and oncoming mortgage shock for those coming off a fixed deal with a low rate, it may also provide an option for those who find they cannot afford to remortgage at today’s rates.
However, applicants must have a household income of £80,000 or less, or £90,000 in London. If you are buying with someone else your combined income cannot breach the cap.

Help to Buy: Could shared ownerhip be a viable alternative for Government’s flagship scheme?
Furthermore, you must be able to show that you cannot afford the deposit and mortgage payments on a house that meets your needs on the open market.
What this means in practice, says Jon Lord, managing director of Metro Finance and one of the Mortgage Advice Bureau’s shared ownership experts, is whether a prospective house purchase would breach Home England’s affordability calculator that works on a maximum of 4.5x income and 45 per cent debt to income ratio. In short, he says, ‘If 4.5 x income + deposit = full house value’ – then it’s likely a rule breach,’ and therefore unaffordable.
You also cannot own another property when you buy through the scheme, and like any property purchase, mortgage lenders will check your credit score.
And of course, you must be able to put down a deposit of at least 5 per cent of the share of the property you are purchasing.
What are the benefits of shared ownership?
The main draw of shared ownership is it offers a route to property ownership for those who otherwise would not be able to afford it, offering them lower deposits and more accessible mortgage costs.
One benefit of shared ownership is you can increase your share of the property – the amount of equity you own.
Once you have lived in your property for a period of time as described in your terms, you will have the option to purchase a larger share of the home with most people being able to build up to full ownership through the scheme, although some properties cap ownership at 80 per cent.
Adding to the equity you own will mean extending your existing mortgage to cover the extra or remortgaging altogether, unless of course you can pay for the additional share outright. It will also involve the usual additional costs associated with house buying included a surveyor and conveyancer.
Under shared ownership you don’t pay stamp duty on your initial purchase. Furthermore, the scheme allows you to sell your home whenever you like in the same way as any other property.
What are the drawbacks of shared ownership?
First, bear in mind that not all lenders offer shared ownership mortgages. For this reason, it may be worth getting in touch with a broker who is familiar with the area.
You will also need to budget for additional annual costs such as the ground rent and service charge on the property. Shared ownership buyers will likely have to pay both irrespective of the size of their share.
This is because shared ownership properties are owned leasehold not freehold, essentially meaning that you own a percentage of the building but not the land it is on.

Planning an overhaul? Although buyers are allowed to redecorate, there may be limits on what structural changes can be made to a shared ownership property
And while you are unlikely to pay stamp duty on your initial purchase, you will have to pay the tax on the whole value of the property if you increase your share to 80 per cent or more.
There may also be restrictions on the physical changes you can make to the property if you do not own it outright. You will be free to decorate the property as you wish, but may need to obtain permission from the housing association for any structural changes.
Finally, when you come to sell the home you will need to sell it to another shared ownership buyer – which could be trickier than selling it on the open market as the pool is smaller.
How does shared ownership compare to Help to Buy?
Help to Buy – the Government scheme to support first time buyers get on the housing ladder – ended last year, leaving many prospective owners looking for alternative routes.
Shared ownership could be an option for some of them, but buyers should be aware that the schemes are quite different.
‘In principle, the shared ownership scheme is an excellent way for those with lower incomes and or smaller deposits to get on the housing ladder,’ says Justin Moy, managing director at EHF Mortgages. ‘[But] in recent years, the rent and service charge costs have increased substantially, and can make it arguably more expensive than a traditional purchase.’
He suggests buyers consider whether they can purchase a property on the open market through a 95 per cent or even 100 per cent mortgage, rather than opting for a shared ownership scheme.
He tells This is Money that he would like to see changes made to the scheme including the capping of rent and service charges for tenants, especially in areas where property prices are particularly high.
‘Having any scheme to provide support to buy a property is important, and shared ownership needs to evolve more in 2023 to be a true replacement for Help to Buy,’ he adds.
Some links in this article may be affiliate links. If you click on them we may earn a small commission. That helps us fund This Is Money, and keep it free to use. We do not write articles to promote products. We do not allow any commercial relationship to affect our editorial independence.
The UK’s 50 best workplaces have been revealed… and most are in tech, finance or consultancy: Check if your company made the list
- There are some surprising names on the list of top 50 employers
- Staff ranked their employers against five targets for the Glassdoor list
- Technology companies and consultancies dominated the rankings
The best places to work have been revealed – and there are some surprising names on a list dominated by tech firms and consultancies.
The overall top workplace in the UK is consultants Bain & Company, according to the latest Best Places to Work survey from workplace ranking firm Glassdoor.
Bain & Company won after employees praised the company’s culture, work-life balance and learning opportunities.

A good working culture and a great team are two key components to a top workplace, according to Glassdoor findings
Workers said the firm had ‘genuinely some of the finest people to work with, smart and empathetic in spades’ and an ‘amazing culture’.
In second place is software provider ServiceNow, which was the 2021 winner, then another consultancy – Boston Consulting Group.
But move further down the list and there are some household names, such as Google, Microsoft, Apple – and even Heathrow airport.
Overall 21 technology companies made the list of best workplaces, as well as nine finance firms, seven consultancies and four manufacturing employers.
The top 50 places to work in 2023
- Bain & Company
- ServiceNow
- Boston Consulting Group
- Equinix
- Ocado Technology
- Mastercard
- Arup
- Salesforce
- Version 1
- Softcat
- BlackRock
- Microsoft
- Adobe
- Novuna
- Imagination Technologies
- Johnson & Johnson
- SAP
- Wise
- Capgemini Invent
- Office for National Statistics
- Cromwell Tools
- Mott MacDonald
- SUSE
- Cisco Systems
- Dell Technologies
- Baringa Partners
- Schroders
- Bloomberg L.P.
- S&P Global
- Syngenta
- Deloitte
- VMware
- Awin
- Diageo
- Apple
- RBC
- Fidelity International
- Kainos
- Dishoom
- Goldman Sachs
- Siemens
- NFU Mutual
- Avanade
- McKinsey & Company
- Heathrow Airport
- Expedia Group
- Computacenter
- Accenture
- Procter & Gamble
Glassdoor chief executive Christian Sutherland-Wong said: ‘The past year brought extreme highs and lows for job seekers and employees, but despite an increasingly uncertain job market, Glassdoor data shows there are still companies hyper-focused on creating outstanding employee experiences.’
According to separate research by recruiter Hays, electrical engineers, sustainability managers and cyber security experts could pocket some of the biggest pay packages if they decide to move jobs this year.
Over half of workers intend to look for a new job in 2023, it said, and with more than 1.1million unfilled jobs in the UK those who are looking for a new challenge are likely to see plenty of opportunities.
Skills-short areas such as engineering, construction and technology are set to continue to be in high demand in the coming months, along with energy and sustainability managers as the drive for green jobs continues.
The top salary increases went to salesforce solutions architects, who have seen their average annual pay jump by nearly 19 per cent to £107,000, along with systems design engineers and product managers, which saw their average pay rise 18 per cent.
>> These are the jobs that saw the biggest pay rises in 2022
Job | Industry | Salary (average 2022) | % Salary increase since 2021 | |
---|---|---|---|---|
1 | Salesforce solutions architect | Technology | £107,000 | 18.50% |
2 | Systems design engineer | Engineering & manufacturing | £65,000 | 18.20% |
3 | Product manager | Technology | £71,091 | 16.50% |
4 | SAP basis consultant | Technology | £61,800 | 16.20% |
5 | Head of talent/resourcing | HR | £79,000 | 14.90% |
6 | Newly qualified solicitor | Legal (private practice) | £67,577 | 14.60% |
7 | Aerodynamics engineer | Engineering | £65,000 | 14.50% |
8 | Cyber security analyst | Technology | £56,136 | 14.10% |
9 | Cyber security engineer | Technology | £73,125 | 13.90% |
10 | Fabricator/welder | Engineering and manufacturing | £32,250 | 13.70% |
11 | Clinical research associate (senior level) | Life sciences | £54,000 | 13.70% |
12 | Data scientist | Life sciences | £58,750 | 11.90% |
13 | Platform engineer | Technology | £60,455 | 11.80% |
14 | Marketing analyst / CRM analyst | Marketing | £38,909 | 11.50% |
15 | Diversity, equality, and inclusion manager | HR | £55,833 | 11.30% |
16 | Machine learning manager | Life sciences | £81,000 | 11% |
17 | Data engineer | Technology | £57,364 | 11% |
18 | Engineering operative | Engineering & manufacturing | £26,000 | 10.60% |
19 | Financial director | Accountancy & finance | £126,042 | 10.60% |
20 | Automation engineer | Engineering & manufacturing | £49,500 | 10.30% |
Source: Hays, based on the analysis of over 10,000 salaries, alongside survey data of over 13,500 employers and professionals. |
How the rankings work
Glassdoor looks at anonymous feedback from workers reviewing companies on its website, then works out the most popular firms among staff.
The workplace rating firm asks workers for some of the best reasons to work for their employer, any downsides, how satisfied they are with their job and for details on working culture, among others.
Firms must have at least 1,000 staff to be part of the Glassdoor rankings, and must have at least 30 reviews from staff.
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I have received a letter from HMRC and think it may be trying to tell me that I have underpaid my tax. I have two properties that I rent out and I’m fairly certain I have paid my tax correctly – and have been doing so for years.
At first I thought it was a scam. But having double checked, I can see that it definitely isn’t fraudulent.
The letter begins as follows: ‘We are writing to you because you are, or have been, a landlord who lets property.

Our reader has received a letter from HMRC which they think suggests they may not have told the tax authority about all of their rental income
‘Our information shows that you have put a deposit in a ‘Tenancy Deposit Scheme’. We have compared this information with what you have told us on your Self Assessment (SA) tax return for the year ending 5 April 2021.
‘Our comparison suggests you may not have told us about all of your rental income.’
So does this mean HMRC is now using data from the Tenancy Deposit Scheme as a tool to target landlords who they suspect to have underpaid tax on their rental income?
And do I actually owe anything or has this letter been sent out to all landlords?
Ed Magnus of This is Money replies: First and foremost, it’s great that you checked to see if it was a scam. Fraudsters are constantly attempting to mimic HMRC in a bid to fool people.
It’s always worth cross-referencing any letter you receive from HMRC with any previous communication you have on file.
It’s also worth checking any postal or website addresses included within the letter, as well as any phone numbers. Compare these against the official numbers as shown on the HMRC website.
HMRC’s main contact details can be found on its website. Although it doesn’t list all of the numbers it might share with someone in a letter.
You may also want to add ‘Do not trust caller ID’ on phones as numbers can be spoofed. If in doubt, you can contact HMRC directly to double check – just make sure you use an email address or phone number from its official contact list.
URLs starting with www.gov.uk will always direct to official Government department websites.
It’s also important to remember that no HMRC letter, email or text will offer unexpected tax rebates or refunds.

Could it be a scam? It’s always worth cross referencing any letter you receive from HMRC with any previous communication you have on file
As for the letter you received, it appears to be genuine. HMRC is indeed using a database obtained from the Tenancy Deposit Scheme to contact landlords about paying the correct amount of tax.
It forms part of HMRC’s Let Property Campaign, launched in 2013, which encourages buy-to-let landlords to voluntarily disclose any undeclared rental income and offers an opportunity to address any previous errors.
According to analysis by the accountancy firm UHY Ross Brooke, the campaign generated an additional £17.7m in tax revenue last year.
Any landlord that makes a full and voluntary disclosure in these circumstances can usually expect a lower penalty than HMRC would normally charge if the tax authority were to raise an enquiry or compliance check itself.
The Tenancy Deposit Scheme is one of three Government-approved deposit schemes in England and Wales that hold the deposits of tenants for the duration of their tenancies.
The other two are called the Deposit Protection Service and My Deposits. In Scotland and Northern Ireland there are separate deposit schemes.
The Tenancy Deposit Scheme data simply tells HMRC which customers have received rental deposits and therefore in all likelihood will have also received rental income.
However, that’s about as far as it goes. The data does not provide HMRC with an actual snapshot of how much rent has been received by each landlord.
The letter should be deemed as an educational prompt for those who rent out property, to ensure previous tax returns are correct.
Although the letter seems alarming, HMRC says it isn’t intended to accuse anyone of deliberately evading tax.
>> What’s in store for UK buy-to-let landlords in 2023?

It might seem alarming, but HMRC says its letter is simply a reminder for landlords who may owe tax to make sure their affairs are up to date
The same letter to landlords also tells them they might owe HMRC capital gains tax if they recently sold a rental property.
Once again this is a prompt rather than an accusation of any tax evasion.
The scheme is one tool HMRC has for identifying landlords. It can also use data from council tax bills, the Land Registry and estate agent listings.
How to take part in the Let Property Campaign
To take part in the Let Property Campaign landlords need to get in touch with HMRC.
They will then need to disclose any income, gains, tax and duties they have not previously told it about.
Landlords will also need to make a formal offer stating what they believe it is fair for them to pay, and help HMRC as much as they can if it asks them for more information
When assessing the reduced penalty offer, HMRC will take account of the level to which they have helped its enquiries and the accuracy of the information provided.
What’s in it for landlords?
If you have paid less tax than you should due to misunderstanding the rules or deliberately avoiding paying the right amount, it is better to come to HMRC and admit any inaccuracies rather than waiting until HMRC uncovers those errors.
There is no disclosure ‘window’ requiring you to disclose what you owe by a specific date, but landlords risk higher penalties if they become subject to a full enquiry and have not already notified an intention to disclose.
When landlords make a disclosure they can tell HMRC how much penalty they believe they should pay.
What they pay will depend on why they have failed to disclose their income.
If they have deliberately kept information from HMRC they’ll pay a higher penalty than if they have simply made a mistake.

HMRC’s Let Property Campaign encourages buy-to-let investors to voluntarily disclose any undeclared rental income
They may not have to pay any penalty at all, but if they do it is likely to be lower than it would be if HMRC found out they had not paid enough tax of its own accord.
If they cannot afford to pay what they owe in one lump sum, depending on their circumstances, they’ll be able to spread their payments.
If they completed previous tax returns, but made careless mistakes when declaring their income, they only pay for a maximum of six years — no matter how many years they’re behind with their tax affairs.
However, if they do not come forward and HMRC finds later that they’re behind with their tax, it may be harder to convince them that it was simply a mistake.
The law allows HMRC to go back up to 20 years and in serious cases HMRC may carry out a criminal investigation.
What if undisclosed rental income is kept secret?
Landlords who fail to disclose their rental income may feel confident that they will get away with it. However, dodging the taxman may come back to bite them.
If HMRC suspects landlords have not declared all their rental income it can carry out compliance checks or enquiries.
Any landlords involved will not then be able to make use of the opportunity offered as part of the Let Property Campaign, and will usually be charged higher penalties.
The penalties could be up to 100 per cent of the unpaid liabilities, or up to 200 per cent for offshore-related income.
In extreme cases HMRC may consider the instigation of a criminal investigation, in line with its criminal investigation policy.
Some links in this article may be affiliate links. If you click on them we may earn a small commission. That helps us fund This Is Money, and keep it free to use. We do not write articles to promote products. We do not allow any commercial relationship to affect our editorial independence.
House prices slumped 2% in December, says Halifax: Lender forecasts 8% drop in 2023 as cost of living crisis weighs on property market
- Monthly growth hit -1.5% in December, slightly more than November’s -2.4%
- The average UK house price is now £281,272, down from £285,425.
House prices fell 1.5 per cent in December taking the average UK house price to £281,272, down from £285,425, according to Halifax’s latest house price index.
Annual growth sat at 2 per cent, well below November’s figure of 4.6 per cent.
However, despite the slump the average house price remains 11 per cent higher than it was at the start of 2021, when the pandemic saw record price growth.

Halifax HPI: Annual rate of growth dropped to 2.0% in the last month of the year
Kim Kinnaird, director, Halifax Mortgages, said: ‘As we’ve seen over the past few months, uncertainties about the extent to which cost of living increases will impact household bills, alongside rising interest rates, is leading to an overall slowing of the market.
‘As we enter 2023, the housing market will continue to be impacted by the wider economic environment and, as buyers and sellers remain cautious, we expect there will be a reduction in both supply and demand overall, with house prices forecast to fall around 8 per cent over the course of the year.
‘It’s important to recognise that a drop of 8 per cent would mean the cost of the average property returning to April 2021 prices, which remains significantly above pre-pandemic levels.’
A forecast of an 8 per cent drop in prices puts Halifax’s prediction within the scale of other views in the market.
Predictions vary, but several analysts have suggested house prices could fall between 10 and 15 per cent over the next two years.
The Office for Budget Responsibility has said house prices are set to fall 9 per cent between the end of 2022 and the end of 2024.
And elsewhere estate agent Savills has updated its forecast to a 10 per cent fall in house prices over 2023.
>> Read our round up of the property market predictions for the year ahead
All nations and regions saw annual house price inflation, although the rate of growth has slowed, Halifax said.
On an annual basis, the North East saw the greatest slowdown in growth, with annual house prices rising by 6.5 per cent, compared to 10.5 per cent the prior month. Average house prices in the region are now £169,980.
Simon Gerrard, managing director of Martyn Gerrard estate agents comments:’But the big issue continues to be supply. There simply aren’t enough properties coming onto the market, which could well have reduced the magnitude of today’s reported drop in house prices, which is lower than that for November.’
Iain McKenzie, CEO of The Guild of Property Professionals, adds: ‘After hitting an all-time high of nearly £300,000 in the summer, house prices have now fallen back below the level they were in March. There’s no need to panic, as a readjustment in the market was to be expected following more than two years of inflated house prices.
‘Fortunately for sellers, the demand for quality housing is still high, and many areas of the country are still seeing a shortage of stock, which will keep prices buoyant in the months ahead.
‘Pessimism over the future of house prices may be misplaced. Employment figures remain strong, and there are signs we may soon see falls in the wholesale fuel prices, which have helped drive up inflation and the cost of living over the past year.’
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