Early BTL investors are retiring and selling up

It makes sense that some older landlords retire, but I'm not convinced about the comment, "While the tax and regulatory changes haven’t driven a buy-to-let sell off...".

You just have to read the many posts on here about landlords fed up with the tax changes, regulations etc to know it's not just older landlords getting out of the PRS.

Older' housing providers would probably stay until they were 'even older' if they weren't being so abused

As an “older” investor myself and investing since the 90’s I think it’s the new reforms, stamp duty etc that is putting people off. I certainly am not looking forward to the future so will not be investing anymore.
S21 going will cause a big headache… so am now transitioning everything so my child can take over it all… with the new reforms coming S21 going has lead me to serve notice on dubious tenants and increase number of inspection creating more cost to run properties… it’s the reforms not the age driving landlords away… Along with the government out to get as much as they can from investors..

https://www.property118.com/landlords-fear-the-scrapping-of-s21-and-are-selling-up/

The potential scrapping of section 21 worries a third of landlords and is a ‘driving force’ behind growing numbers selling up and leaving the private rented sector (PRS), a survey reveals.

Our long term plan was to keep our BTL properties to supplement our pension. We are at retirement age after 20 years of being LL's (whilst still working) and have now sold 80% of our portfolio due to tax and legislation changes. No longer profitable and much higher risk of bankruptcy if we get a bad tenant. Have sold up when tenants have left but the remaining 20% soon to be issued with Section 21 whist it is still an option and before CGT wipes out any profit gained by our hard work and improvements. All properties at EPC C or above.

Reply to the comment left by John Harniman at 17/04/2023 - 13:02
Interested to know how you plan to transition your portfolio to your child. This is something I would like to do but not sure the best way to proceed

I have been a landlord of over 20 years and over the last 5 years have sold 24 of my properties and now have S21 served on the rest. Yes I may be nearing retirement age but that is NOT the reason . Its the tax and legislation that makes this sector unprofitable and just horrible to remain within . S21, S24, EPC limits, interest rates, Stamp duty and now the changes to capital gains. - oh what a surprise , rents are going up and available properties declining - who would have thought that would happen when you force private landlords out

Scary that Hamptons think early 90's to now is only 2 decades - no wonder Rishi says we're innumerate and need double maths.

My understanding is that most landlords had probably intended to keep most of their portfolio beyond statutory pension age - perhaps selling one or two to fund some bucket list holidays, gift some to children who wanted to take on the responsibility. Any remaining property was planned to cover pensions, to be sold to cover care costs.

The Osborne years put paid to most landlords tax planning, with the slashing of the CGT relief on previous primary residence and higher CGT rates.
The return of interest rates to more normal levels has driven home the S24 stake, ending the plans of many to
enjoy a comfortable income by topping up their pension with their rental profits.

This combined with the seemingly endless stream of licencing schemes, legislative rule changes and the prospect of having to fund energy efficiency works while losing S21 to recover our properties is proving the final straw for many.

When better returns are available elsewhere for less risk, is it any wonder landlords are selling up?

Hopefully, they are able to take advantage of Mark's advice and will be taking a holiday of a lifetime while they do so.
https://www.property118.com/opportunities-uk-landlords-tax-efficient-time-out/

"Ms Beveridge said: “While the tax and regulatory changes haven’t driven a buy-to-let sell off, they have stemmed the next generation of landlords."
One would think the lady will be on the top what is happening in the PRS.
Clearly this is not the case.
Majority of exiting landlords simply had enough of being the enemy No. 1 of this country and constantly exposed to new idiotic regulations.
it is enough to read comments on property pages / articles. The war on landlords is the main reason for what is happening now.

If an older landlord’s properties are paid for and everything is handled by a decent agent there is theoretically no need to retire from being a landlord, you can just retire like I did some years back and put the rent towards topping up your state and/or work pensions.
If I sell up, unless I need the money for some pressing reason it will probably just devalue and property still beats most low risk investments, a good reason to stay. However, my first rental property goes up for sale next week not because I am so worried about “tax or regulatory changes introduced since 2016 and the more recent higher interest rate environment.” What I fear is the regulatory changes that I know are coming and those that I fear will come. I don’t want my properties becoming a millstone around my neck. I want to be able sell them when I want to without let or hindrance. Contrary to popular belief most landlords are not rich and have worked for what they have got and I for one don’t want to potentially have to subsidise a tenant’s lifestyle at the expense of my own.