Landlords defy expectations of an ‘exodus’ – claims Lomond

Landlords defy expectations of an ‘exodus’ – claims Lomond

0:05 AM, 15th November 2024, About a month ago 12

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Two weeks after the Autumn Budget, fears of a mass exodus of landlords from the private rented sector (PRS) are claimed to have been unfounded.

‘Research’ from Lomond indicates that the number of tenanted properties listed for sale has fallen by up to 3% in some areas.

Prior to the Budget, there had been widespread concern that a potential increase in capital gains tax would drive many landlords out of the PRS.

Exodus of buy to let landlords

Despite clear evidence from Property118 readers, it is claimed the exodus is exaggerated.

Lomond’s chief executive, Ed Phillips, said: “It’s becoming fairly apparent that the exodus of buy to let landlords has been somewhat exaggerated and the vast majority continue to see the rental sector as a secure and consistent avenue of investment, despite the government’s best efforts to dent profitability.

“The good news is that having escaped a capital gains tax increase, we simply haven’t seen a rush for the door following the Autumn Budget.”

He added: “We expect the buy to let landscape will continue to remain positive now that the budget dust has settled.”

Any Drop in rental listings still impacts tenants

While second homebuyers and buy to let investors faced a 2% increase in stamp duty in the Budget, the overall impact on the rental market seems to have been minimal.

Lomond’s analysis shows a marginal decline of 0.6% in the number of tenanted properties listed for sale across England.

Some regions have seen even more significant falls.

It found that the East of England experienced a 3% drop in tenanted property listings.

The South West and North East also saw notable reductions of 2.5% and 1.9%, respectively.

Only the Midlands bucked the trend, with a slight increase in tenanted property listings in both the East and West Midlands.


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Crouchender

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7:41 AM, 15th November 2024, About a month ago

The NRLA reported today that more LLs are selling than buying. Poppycock is also a 'exodus' denier. In reality there is constant drip of selling from LLs. Now that Reeves did not raise the exit barriers to sell with CGT still at 24% (lets face it is CGT WILL go up in Labour's term). Now is the best time ever to sell (especially in London as our CGT will be high) as a significant number of us LLs belong to the grey market so really want to retire from 24/7 on call from our tenants. I do.

Cider Drinker

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8:59 AM, 15th November 2024, About a month ago

Property is an illiquid investment. Landlords cannot simply exit the sector immediately. Some may not understand the full impact of the budget and the Renters Rights Bill.

I’m selling over the next 3 years as and when tenants leave. Rents will be increasing from very low levels (average of 17% below LHA levels) to encourage them to leave.

Old Mrs Landlord

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10:40 AM, 15th November 2024, About a month ago

Reply to the comment left by Cider Drinker at 15/11/2024 - 08:59You and at least half of other landlords I suspect. Continuing to let to established tenants with whom they have good relationship is manageable under the new conditions but the risks associated with taking on an unknown new tenant who can stay forever are too high for many experienced landlords to contemplate so they will sell over a period of years as current tenants voluntarily leave. To expect a simultaneous deluge of landlord properties to have swamped the market seems very naive for a property professional. As for Pennycook (Poppycock) quoting figures from pre-Covid years as evidence that landlords are not leaving the market, well if he really believes that is the current position he is in for a rude awakening, poor chap. Just like Shelter, Generation Rant and other tenant advocate bodies, government can't see the harm they are doing to those who need or wish to rent.

NewYorkie

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10:57 AM, 15th November 2024, About a month ago

Reply to the comment left by Old Mrs Landlord at 15/11/2024 - 10:40
The MoJ says landlord s21 claims surged in Q3. This is a direct result of the RRB. The inflationary budget is also a contributory factor, with mortgage rates on the rise yet again. This will accelerate the exit of those already burdened landlords who thought mortgage rates would drop to a manageable level, which would allow them to stay in the game.

Old Mrs Landlord

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12:10 PM, 15th November 2024, About a month ago

Reply to the comment left by NewYorkie at 15/11/2024 - 10:57
The budget came after quarter 3 so I don't see how that can have contributed to something that happened in that quarter.

Cider Drinker

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14:25 PM, 15th November 2024, About a month ago

We approach the end of 2024.

Landlords may be in fixed rate mortgages that are coming to an end. With BofE Base Rate currently at 4.75%, I think the next move will be upwards. We have had an inflationary budget, delivered by an incompetent chancellor who is part of a naive government with a HUGE majority. What could possibly go wrong. I’m sure interest rates will early rise next year.

For those who have fixed term deals ending soon…

5 years ago, the BofE Base Rate was 0.75%.

3 years ago, it was 0.25%.

2 years ago, it was 3.50%.

Mortgage rates today are going to be much higher.

Paul Essex

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16:03 PM, 15th November 2024, About a month ago

Not entirely sure how the author believes landlords could have reacted that quickly to a budget, even if everyone issued a Section 21 on budget day the total effects would take months and years.

Reluctant Landlord

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16:16 PM, 15th November 2024, About a month ago

‘Research’ from Lomond indicates that the number of tenanted properties listed for sale has fallen by up to 3% in some areas.

So the LL's are evicting first then instead, to gain vacant possession? Completely viable answer to this. Or perhaps they are being sold at auction rather than agency listings?

No breakdown in type of property - In the midlands there are lots of HMO's that are on the market not single family tenanted properties.

Reluctant Landlord

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16:52 PM, 15th November 2024, About a month ago

Reply to the comment left by Old Mrs Landlord at 15/11/2024 - 10:40
Poppycock isn't in for a rude awakening...tenants are.

JamesB

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9:32 AM, 16th November 2024, About a month ago

I am a portfolio landlord with 28 years in the business in Greater London. In October I completed on the sale of a family home that I had owned and let for 21 years. I am reading P118 forum whilst having breakfast before I go and start work on the outside of the hmo I have owned since 1999. I gave all the tenants in that property their notice straight after the budget.
It makes me laugh reading that there is no landlord exodus. Hopefully there isn't and I can exit the market quickly and quietly before more draconian measures are introduced to force current landlords to stay in.
One thing I would add is that I always intended to keep my portfolio for ever. Selling up was never part of the plan and has been caused ENTIRELY by stupid govt policies.

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