If you’re a landlord looking to sell your rental property or second home, you’re not alone. A new analysis from estate agent Savills reveals a big jump in landlord sales across the UK – and it could be down to fears over changes to capital gains tax (CGT).

The data shows sales of buy-to-let properties and second homes have risen by 34% over the past 6 years. Savills estimates landlords are now selling around 190,000 properties per year, up from just 129,000 annually in the years before 2021.

That means landlord sales now make up around 1 in 6 of all property transactions, compared to just 1 in 15 back in 2013-14. The jump appears to be driven by increasing financial and regulatory pressure on private landlords, including:

• Higher stamp duty on buy-to-lets
• The loss of tax relief on mortgage interest
• Potential changes to “no-fault” evictions

But there’s another big factor at play – the prospect of Labour reforms to capital gains tax (CGT). Landlords are concerned a future Labour government could hike CGT rates, leaving them with much bigger tax bills when they sell up.

One landlord, Mick Wright, told the FT he decided to sell his two rental properties earlier this year to “get ahead” of any potential CGT rises under a Labour administration.

The trend is particularly pronounced in London and the South East, where 40% of landlord sales occurred in the first 3 months of 2022. Experts says this is likely down to the high capital gains landlords have built up in these pricey regional markets.

Zoopla’s research director Richard Donnell says mortgage affordability is also squeezing landlords in London, where they can only borrow around 50% of a property’s value compared to elsewhere in the UK.

And if Labour does reform CGT, it could prompt an even bigger rush for the exits among landlords wanting to cash in before any tax hikes kick in. Savills estimates the Treasury could net an extra £1.2 billion a year if CGT was aligned with income tax rates.