Rents will continue rising as landlords ‘withdraw’

A perfect storm is a coming, when you mess with supply and demand. This is bad news for tenants bad already for landlords forced to exit, bad for government unless you count the all the CGT payments coming there way, but good news for big corporate businesses and banks who will be offering box rooms at extortionate rents to students who can ill afford them.

Sold a few flats already the ones that were a little further away or coming up for refurbishment, the payback and hassle are just not currently worth the bother.
You only have one life .
I Will decide if i am selling the rest this year and then move abroad into the Sun ...
Let the Councils and Government deal with the sh!+ STORM they them selves have created.
Would never have thought a Tory government would be so buissnes unfriendly.

I tried to describe the following scenario to my MP.
Example: I bought a house in 2010 for £250k and ran it successfully as a BTL. As a result of excessive government meddling, I sold out 10 years later for £400k, paid my CGT and cleared off a chunk of another BTL mortgage. Rinse and repeat a few times to end up with a virtually unencumbered, albeit smaller, portfolio.
Then in 2025 the government realises that the sh!tstorm it's created needs to be sorted and starts to reverse some of its crazy anti landlord measures to encourage the likes of me to re-invest in housing.
Trouble is, I'm now 65, I'm enjoying not having the hassle, I'm enjoying a few few holidays in the sun. The numbers no longer add up - that £250k house is now £500k. New entrants to the market aren't going to be investing at that level. So sorry chaps, I'm out!
This is happening in Ireland big time. At a peak, they had 23,000 houses available to rent in 2009. Currently less than 1,000! They are trying to tempt landlords back into the market but it's too little, too late.
Suffice to say my MP didn't get it.

The fact that TwentyEA think Bristol is in the North East and Norwich in the South West, might cast some doubt on the accuracy of their data!

Reply to the comment left by Old Mrs Landlord at 01/12/2022 - 08:46
Put your glasses on Mrs L. The left column and % is major cities, the right column and % is UK regions.

So when we finally say OK you win and sell, who will get the blame then.

Reply to the comment left by Silver Flier at 01/12/2022 - 10:49Oh yes, I see, it's two tables in one. My mistake. Thank you for pointing that out SF.

As landlords we keep being squeezed, so it no wonder supply is drying up. I only have two investment properties, and one of those is now subject to a "selective license" by the local council. Apparently this is to ensure quality of rental properties, but everything they require to get licensed I was already doing, so it's just an extra £700 p.a. out of my profits, or rent increase I'll need to pass on. I'm also expecting a similar hike when my mortgage deal runs out next year, even though I have about 40% equity in the property. Chances are I'll need to sell this property as the tenants won't be able to afford the rent hike and if it makes any profit after that it will be too small to be worth the hassle.

Currently its a drip drip affecte of landlords selling up as the industry becomes unprofitable, soon it will turn into a torrent as landlords need to re finance eventually becoming a flood ,at that point it will be too late for the Government to do anything .
The ones that will suffer most are the Good tenants who have done nothing wrong .
The Government haven't yet realised they are looking into the Abyss ,that will eventually make them unelectable for a generation,if not longer .

Reply to the comment left by Adrian Anastas at 03/12/2022 - 09:25
Sorry Adrian - How is it £700 pa?