Landlord exodus from the PRS as uncertainty and costs rise

Not too bothered about S21 going as long as mandatory option in revised S8 to allow property to be sold. My remaining 6 tenants know they can live in the property as long as they pay the rent (and can have pets as well). I basically spend the rents on improving the property (no mortgage) as I have other income and am prepared to just take the increase in property value as my profit. Properties will likely go to the family when I croak it and I have stipulated current tenants must not be turfed out if they are paying the rent. However, when a tenant leaves the property will likely be sold as the family aren't interested in managing tenants or buying other properties.

Reply to the comment left by GlanACC at 20/07/2024 - 08:33
Interesting point - does this mean that your beneficiaries will be forced to become landlords whatever their wishes?

Even if selling is still allowed probate etc still takes many months during which period someone is still legally responsible for the property eg licences, deposits, insurance (I guess this dies with the applicant) and probably more things I have forgotten.

Reply to the comment left by Mike Thomas at 19/07/2024 - 22:48
IMHO Gove and Osborne were not really worried about the FTB they just wanted to squeeze the PRS to make way for BTR and all the perks they would receive as a result.
Mr Osborne only a short time after he stood down as an MP took up a position with the Blackrock investment company who are very big investers in BTR.
Watch this space with Mr Gove it will be interesting to see his next move!

Reply to the comment left by GlanACC at 20/07/2024 - 08:33
We need to keep a careful watch on what is happening because if the consevative version of the RRB was passed into law we would not have much hope of ever gaining vacant possession to sell because it would have only been a discretionary ground.

I cannot see Labour allowing possession either and if we have to spend money going to court then possession will rarely happen.
There will also be some tenants with their sob stories.
In a fair society this would be a mandatory ground if we need to sell or retire.
Alas it is not!

Reply to the comment left by Southern Boyuk at 20/07/2024 - 08:15Can't get out of it soon enough. I can get 5.5% by selling my flats & investing the equity in a fixed bond for doing nothing. Why would I want the stress & responsibility of being a LL
I'm 69 years old. Owned them for 25 years. Any more equity I'd accrue if I don't sell them would probably go in higher CGT under this new Commie govn't to help build free homes for fleeing safe France.
What's remaining would go to my estate. Time to release the equity & enjoy it while I'm still alive.
Let someone else have the responsibility & risk of providing rental accommodation.
5000 more rental homes needed/week due to net legal migration last year at 745,000 + the illegals !
Let the government own the situation

Does anyone have a best guess of when the S21 ban will actually become law and what therefore will be the latest date a landlord can issue an S21?

Reply to the comment left by Pobinr at 20/07/2024 - 00:10
Rents have to reflect property purchase prices. If one inherits a £100k property, ones is not going to rent it for less than 5%. Why bother? Sell and bank
the money instead.. In the South East most landlords are a modest making 5% before tax.. Sure.. There is the gamble on above inflation property price increases but we have clearly reached a peak..
Yet Labour are now talking of rent controls?! A very large increase in house building would adversely affect me but I recognise we need the housing.. But rent controls? At best the government would have to manage the rate of (rental) return to reflect property prices.. And good luck with that! 😯

A couple of things need to be set straight.
Big companies coming into the rental market will not affect the PRS one jot. They will cherry pick the tenants and certainly won't accept anyone that has anything but impeccable references (and they can afford to do more thorough checks than your average landlord).
Building 300,000 houses a year (don't make me laugh) wont affect the PRS one jot as a) it won't happen and b) the majority of the properties will go to first time buyers.or existing property owners moving
Most PRS lettings are through people that can't afford to get a deposit for a property , don't want a property or pensioners. Those on HB are stuck in renting as their choice is limited.
I personally know a number of landlords that have sold up or are selling as tenants leave, I don't know any landlords that have purchased a property in the last year.
For those still in the game (including me), we should still be able to get our properties back as this WILL be a mandatory ground in the revised S8 and I am mortgage free so even if they don't pay the rent I am not in a bad situation..
S21 going and pets has never really bothered me as my remaining tenants have been with me for at least 5 years and one 20+ years.
Would I advise anyone to enter the PRS now, only if you are mortgage free and buy more than 4 properties as you could then stand a financial shock of a non paying tenant. Don't buy a flat or any property in a licensed area and don't accept HB tenants as a top up will be needed (you can easily find a valid legal excuse for not accepting HB tenants .

Reply to the comment left by GlanACC at 21/07/2024 - 08:19
"We should still be able to get our properties back as this WILL be a mandatory ground in the revised S8"

Shouting that it WILL be a mandatory ground doesn't necessarily make it so;

'Labour have proposed a 'hardship test', providing the courts with discretion to refuse a possession order if they believed greater hardship would be caused to the tenant than the landlord.

Reply to the comment left by Monty Bodkin at 21/07/2024 - 09:48
I can just see Shelter representing the tenant and using all means possible to persuade the Judge to keep the tenant in the property.

Meanwhile there could be little chance of the elderly owner selling and retiring.

The only fair way is to have selling or retiring as a mandatory ground.

Once they start looking at hardship there are too many loop holes.