The exodus of landlords: How bad does it have to get?

We recently sold the last of our 9 rental properties. We had originally intended keeping them and buying more for many years to come. Most landlords that I know are also sold up or in the process of selling, so where people get the idea that there isn’t a mass exodus of landlords and rental properties, I don't understand.
I genuinely wish those that are staying on as landlords, good luck, and for any that are thinking about venturing into investing in rentals for the first time, do your homework thoroughly.

My daughter recently bought her first property. She viewed many before finalising her purchase. Every property bar none that she went to see was a landlord selling up. Ohh yes but there is no exodus of landlords. It’s typical of politicians that when they want to run through a policy then do not look at evidence or just claim everything is fake news. Then when it goes belly up blame the greedy landlords!!!

The problem that , at any given time, the U.K. has a fixed number of homes.

Some are owner-occupied, some are social rental properties , some are privately rented properties, some are short term lets and some are empty.

The number of people needing a home is increasing daily as more and more people move to the U.K.

The last government introduced Section 24. Next, they banned landlords from gaining possession during the Covid pandemic. They also stopped holiday lets from operating. However, holiday let owners were given £10k plus to compensate them for their lost business. Landlords didn’t get a penny.

Section 24 didn’t matter too much oh as interest rates were low and it was phased in over a number of years. However, iit should have come as no surprise when rates rose and higher rate taxpayers switched to holiday lets (where the tax treatment was fairer).

This meant that there were fewer properties for private long term let.

The invasion continued.

Now, just the threat of the Tories’ RRB, spurred more private landlords to switch to holiday lets or to sell up.

Then Labour happened. Their more damaging RRB has spurred more landlords into trying to sell up. For every private rental that is successfully sold there will be many more where landlords are stuck with tenants they no longer want.

The future is bleak for renters. Landlords will sell whenever their properties become vacant.

Those that can buy a home will be ok. Those that need to rent will see less availability and higher prices. Much higher prices.

And still, the invasion continues.

I regret that Polly Neate has single-handedly (OK, with some help from Generation Rent) managed to decimate the Private Rental Sector and increased homelessness. She should hand back her OBE.

Even if landlords do not sell, the tenant demand is increasing due to immigration demand. Add in a 10% early 20's population bump appearing towards the end of this decade/start of next and rents can only go one way...

The EPC requirements are another impact to a property sector with a large proportion of Victorian houses which will require expensive works to meet EPC C.

And this does not even cover the landlords who are selling up right now!

I'm estimating a 20% rent increase post the RRB going live.

In the Midlands and North West its a dismal situation for Renters, And Landlords.

The situation has not been due to an imaginary big black hole but a sustained attack by the Government and Councils on Mum and Pop Landlords who were doing a great job of Housing Families , Whilst trying to put a bit aside for their retirement.

.I issued 25 Section 21 notices just before the election in response to Angela Rayner’s promise to “abolish S21 from day one".

Bad news for tenants, bad news for me but it’s no doubt what Tories, Labour, Shelter, Generation Rent wanted.

As an accidental landlord of some 12 years and I’ve really tried very hard to look after my tenants despite the odd abuse. Lowest rents in area, brand new properties when rented. Everything fixed sometimes within a hour, all legal requirements done and squeaky clean. I’ve had enough. Sick to death of being vilified by media, politicians and so called charities and the like. The new rent reform act is the final nail. So now in the early process’s to sell everything. It’s just not worth it anymore and my sanity is paramount these days.

Reply to the comment left by Si BB at 04/10/2024 - 13:17
Rents can only go one way until the renters rights bill becomes law, then they could go down.
The bill will see most tenants refer their rents to the tribunal because they will have nothing to loose.
The tribunals will not have any powers to increase the rents.
Using rent tribunals will be a useful delaying tactic for tenants because they cannot loose and it will take perhaps several months before the assessment and the new rent cannot be back dated and therefore it could be several months before the tenant has to worry about an increase or decrease in his rent.
What is to stop a tenant who has been in a property say for six months referring his rent to the tribunal and perhaps having it reduced?

Win win for the tenant and over time this could reduce rents!