For landlords who sold property for less than they bought it, the average loss in 2024-25 was £32,200, estate agency Hamptons found.
It means that roughly 36,000 buy-to-let properties sold at a loss in the 2024-25 tax year.
Capital gains tax is payable on second homes and buy-to-let properties after selling or disposing of the asset. It is not due on main residences.
“Second homes are not holding their value,” said Richard Donnell, of property portal Zoopla.
Since April 2025, more than 200 councils have introduced a 100pc premium on second homes. The four-figure bills have forced owners to sell inherited family homes and holiday cottages.
The findings of the FOI “reinforced the point that property is not a one-way ticket to capital growth”, Mr Donnell said.
David Fell, of Hamptons, said: “Landlords have historically favoured flats over houses. This is a product of flats often offering higher yields and less hands-on involvement in their day-to-day running. But this has come at a cost when they have come to sell.
“The average landlord who sold last year had owned the property for around 11 years. Only around 5pc of houses have lost value over those 11 years, but around 35pc of flats have lost value.”
