Landlords are buying more PRS homes than they sell

Landlords are buying more PRS homes than they sell

9:55 AM, 16th August 2024, About 3 months ago 18

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More landlords are investing in the private rented sector than exiting it, research from the TDS Charitable Foundation reveals.

Despite a small net increase in rental properties, the study of more than 2,000 landlords found a significant imbalance between supply and demand.

The survey reveals that while 19% of landlords purchased properties in the past year, only 13% sold.

Although the average number of properties bought and sold per landlord was similar at two, the difference makes a ‘modest net increase in the supply of homes to rent’.

‘Landlords purchasing rather than selling’

The head of policy and research at TDS Group, Dr Jennifer Harris, said: “Whilst today’s research points to more landlords purchasing rather than selling properties over the past year, demand for rental housing continues to outstrip supply, with 17 households chasing every home to rent according to Rightmove.

“As the government plans to reform the private rented sector, it needs urgently to focus on boosting the choice renters have when it comes to where to live.

“Without this, tenants will struggle holding rogue and criminal landlords to account given the shortage of alternative housing to move to.”

More likely to offload properties

Landlords with larger portfolios were more likely to offload properties, with 44% of those owning 10 or more selling at least one.

Conversely, just 6% of landlords with a single property sold.

The TDS research highlights concerns among landlords about the Renters’ Rights Bill, with 33% citing it as a key factor in their decision to sell.

Tax changes, particularly additional stamp duty on buy to let properties, also influenced 28% of sellers.

Looking ahead, while 46% of landlords plan to maintain their property holdings, 24% intend to sell, and 19% say they aim to purchase more.


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Paul Smith

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10:46 AM, 17th August 2024, About 3 months ago

This article doesn't smell right; In Fleetwood Lancs a great value area, 3 bed houses that would cost £130k if empty are being sold for £100k with tenants in situ. Why? Because life is becoming intolerable on every level for many landlords with heavy borrowings. The banks are taking all the money and doing very little for it.

Philip Westlake

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14:07 PM, 17th August 2024, About 3 months ago

Remember landlords people living on the street is a government problem not yours

Old Mrs Landlord

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22:49 PM, 17th August 2024, About 3 months ago

Reply to the comment left by Reluctant Landlord at 16/08/2024 - 13:49Whilst I agree that the sample in this study is small, the fact that it was carried out by the Tenancy Deposit Service is a pretty good indication that it is based on genuine privately let properties and not holiday or commercial lets. Whether they were cash purchases or involved a BTL mortgage is totally irrelevant. Several sources, including letting agents, confirm that many landlords are divesting themselves of some or all their rentals and Monty Bodkin has posted a link to one such example.

Imout Ofhere

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7:17 AM, 18th August 2024, About 3 months ago

Reply to the comment left by Old Mrs Landlord at 17/08/2024 - 22:49
The problem for me is that it is NOT the TDS...is a "CHARITABLE FOUNDATION" supported by the TDS.
Another quango if you like.

PAUL BARTLETT

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8:18 AM, 18th August 2024, About 3 months ago

"Without this, tenants will struggle holding rogue and criminal landlords to account given the shortage of alternative housing to move to.”

What evidence of "rogue and criminal landlords" did they get from a "study of more than 2,000 landlords", or is it just easier to buy in to the toxic opinion of activists who house nobody?

Perhaps they could add value by studying local authority actions against
"rogue and criminal landlords" to see how they deliver their existing responsibility for Decent Homes and the impact of Licensing. These are the existing mechanisms for "holding rogue and criminal landlords to account".

Martin Hicks

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17:35 PM, 18th August 2024, About 3 months ago

I suspect that landlords with several properties may be selling any that are not EPC 'C' or not readily made so. Such additional costs in addition to those already in place as well as others threatened in future make disposals almost inevitable.

Frank Jennings

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17:40 PM, 18th August 2024, About 3 months ago

When I studied Statistics at University the sample size needed to be large enough....No Stop! I'm not going down that rabbit hole. Needless to say you can prove ANYTHING with statistics!
However, on the other hand, if this article is correct, then why are the rents going up and up and up, and why do I have so many applications to any rental property I might have? And why are there so few rental properties advertised these days, at the lower end of the market? And I never had people phoning me up before, asking if I have any property to rent! Check right move now and see how few flats are available in your area, to rent!
Maybe someone can write a program that can check all these adverts across the country and come up with some real data and statistics that actually reflect the market.
Finally, I'm sure I could pick 2000 LL's out of 2000,000 or more and skew the results to prove anything I want.
"Lies, dam lies and statistics!" Who said that?
These days we have so many politically motivated bodies, trying to force an agenda.
My advice.... look at your situation, do the Math and research and come up with your solution to resolve any issues you have to face. If that means selling some or all of your portfolio, then do it. Lady luck favours the brave, and punishes the foolish, so good luck whatever you decide.

Reluctant Landlord

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10:05 AM, 19th August 2024, About 3 months ago

"More landlords are investing in the private rented sector than exiting it".

If that's the case there is no housing issue there is no crisis, the PRS is doing a fantastic job and stepping in and housing all those the government can't.

Panic over people. Crisis averted.

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