9:35 AM, 16th May 2024, About 2 months ago 16
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A landlord sell-off is a major driver of tenant moves after 50% of property professionals said that was the main reason for renters moving home last year, a survey has found.
According to PayProp, this is a growing concern – and something that campaign group Generation Rent has highlighted recently.
Just 11.3% of those surveyed said eviction was the cause for a move.
The rental payment platform’s survey also showed a high number of landlords – it’s more than 54.5% – are actively looking to sell rented properties at the time.
The firm’s managing director, Neil Cobbold, said: “The question we should be asking is, ‘Why are so many landlords selling properties?’
“One reason may be the age of the average landlord, which according to the latest English Private Landlord Survey was 58 in 2021.
“By now, they may be thinking about retirement and taking the money they have invested in property as an annuity.
“However, in other cases, a lack of profitability will be an issue.”
Mr Cobbold points to an absence of tax reform to address mortgage costs, higher buy to let mortgage rates and increased regulation combining ‘to make life uncomfortable for many landlords’.
He adds: “If this trend towards fewer PRS properties is going to be reversed, the Government has to find a way to keep landlords in the PRS and encourage more investors to join the sector.
“If not, supply will remain under pressure and rents will continue to rise, making life more difficult for tenants who are already feeling squeezed.”
The firm’s Rental Confidence Index also highlights that 66.7% of landlord properties are being sold to first time buyers – and are lost to the PRS.
This week there was a spat between the National Residential Landlords Association (NRLA) and Generation Rent over the rising tide of tenants being made homeless.
Firstly, the NRLA’s chief executive, Ben Beadle, said: “Landlords selling up is the single biggest challenge renters face.
“The only answer is to ensure responsible landlords have the confidence to stay in the market and sustain tenancies.”
But Ben Twomey, the chief executive of Generation Rent, fired back: “There will always be some landlords wanting to sell, for example, because they are retiring or because their mortgages have become too costly.
“The short-term issue is that tenants have an appalling lack of protection when landlords choose to sell up – even under the new Renters (Reform) Bill as proposed, tenants would only have two months’ notice when evicted for this reason.
“Landlord groups won’t lift a finger to improve this position for tenants, while using the risk of homelessness to demand their own concessions from government.”
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Skezza
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Sign Up21:50 PM, 16th May 2024, About 2 months ago
Reply to the comment left by Cider Drinker at 16/05/2024 - 10:50
Absolutely in a nutshell!
I carried out inspections today on some of my properties, all of them disgraceful, where is the protection for us landlords from tenants?
I have been a landlord for 40 years and cannot get out quick enough!
Firstpower
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Sign Up22:56 PM, 16th May 2024, About 2 months ago
Reply to the comment left by Jo Westlake at 16/05/2024 - 11:21
Hi Jo i mirror you in your once forward planning my son also was keen to carry on in the business and grow it even further but now its just now worth the hassle section 24 is our main reason as well paying tax on your turn over crazy how can you invest in your own houses there is no money to do so the person that suffers then is the tenant and that make me feel guilty and we are not prepared to take that guilt and responsibility moving froward so Government needs to wake up,
i have 15 properties they should be encourage landlords they are the ones who set us on this path, you mirror that across the country thats a lot of lost rental properties just because the government are too weak to take action.
Or is it the fact that every £1 on rent increase that get 45p
Disillusioned Landlord
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Sign Up0:25 AM, 17th May 2024, About 2 months ago
Yes, more landlords are selling up, it’s been getting worse for landlords for the past decade, so why are landlords the only ones not surprised by this??
I’m selling up slowly, my “kids” don’t want to take on the houses I have, so they are being sold off, I’m sure I’m not the only one in this position?
There are now so many negatives, and so few positives to being a landlord is it any wonder?
I honestly don’t know what could make me stay in the segment, and I’m still young enough to do it for the next ten years, but with the current tax system, additional red tape, and hatred of landlords being peddled by the likes of GR and Shelter I don’t want any part of it.
GlanACC
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Sign Up8:00 AM, 17th May 2024, About 2 months ago
Reply to the comment left by James Sim at 17/05/2024 - 00:25
Agreed, I had 18 but have sold 12 so I am mortgage free now. My kids don't want the 6 properties left (idiots) - As I have another business then to save tax I spend at least half of the rent I receive each year on improving the properties. I have just spent over £4k having a patio re laid, new fences and shed on my longest tenant (20+ years), I am having solar panels fitted on another property. I suppose really all I am interested in now is capital appreciation and enough rent left over to pay the reduced tax bill. So, I am definitely NOT a typical landlord but as soon as the tenants leave I will sell the property.
If I were just starting up now I would NOT have gone in to BTL.
northern landlord
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Sign Up8:04 AM, 17th May 2024, About 2 months ago
The potential effect off the Renters Reform Bill (RRB) is underplayed in this article. Landlords do tend to be older, many got into BTL as a pension substitute. Most planned to sell up at some point but kept pushing the date into the future knowing that section 21 was a backstop that would allow them to get their property back for any reason at any time. Once the (RRB) comes into force this ultimate comfort blanket disappears. It seems every eviction will become discretionary and will involve a Court case where the landlord must prove the grounds for eviction, even if they want to sell or move in themselves. Add to this the fact the RRB is going to require that all landlords will need to be registered and will have to pay to join an ombudsman scheme that can apparently fine them £30,000 while not being able to sanction tenants in any way. They will also have to pay for some sort of decent homes inspection. All this makes remaining a Landlord much less attractive.
No wonder that many landlords are moving their exit plans forward and are evicting using section 21 while they still can. Additionally, if a property becomes naturally vacate it is an attractive proposition to sell up, especially in times of rising interest rates and before you need permission from a Court
Reluctant Landlord
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Sign Up9:00 AM, 17th May 2024, About 2 months ago
Reply to the comment left by James Sim at 17/05/2024 - 00:25
I am one of those 'kids'. There is nothing attractive looking forward just stress, so some properties are being sold now....