With September well under way and talk of an annual property tax under Prime Minister Andy Burnham, it’s no wonder landlords are once again questioning what the future holds.
Under proposals previously backed by Mr Burnham, council tax and stamp duty would be replaced with an annual charge paid by property owners, reportedly equivalent to 0.48% of a property’s value.
For landlords already dealing with the Renters’ Rights Act, higher costs, and increasingly demanding compliance requirements, the prospect of another annual property charge may feel like yet another reason to question whether every property in their portfolio is still worth keeping.
But that doesn’t necessarily mean selling everything.
At Landlord Sales Agency, we’re a company founded by landlords for landlords, so we understand that deciding whether to stay in the market or leave altogether is rarely a simple decision.
Some landlords are ready to sell their entire portfolio and move on. Others still believe in property but want to sell the properties that are no longer performing as well, release some equity or reduce their exposure while keeping hold of their best investments.
You don’t have to choose between keeping everything and selling everything.
That is particularly important when uncertainty over tax and regulation makes it difficult to know exactly what the next few years will bring.
A property that has performed brilliantly for the last 10 or 20 years may still be producing rent, but that doesn’t automatically mean it deserves a place in your portfolio for the next 10.
An older property could be approaching a period when maintenance, energy-efficiency improvements or changing compliance requirements demand further investment. A heavily mortgaged property may no longer produce the return it once did.
Another property may simply have reached the point where the equity tied up in it could work harder elsewhere.
Doing nothing isn’t a cost-free option.
The question landlords should be asking is whether the next £10,000, £20,000 or £30,000 is best invested in that property, or whether the equity already sitting in it could be put to better use.
A cost isn’t the same as a loss
We typically sell properties for around 85–90% of their open market value, using some of the equity to create a sale that works for everyone involved.
Using equity to attract the right buyers, secure a tenant’s cooperation and open up more ways to sell isn’t simply “giving money away”. It is a cost of achieving the outcome – just as giving up nine months’ rent, spending £1,000 evicting a tenant and another £5,000 redecorating and replacing worn fittings can be costs of selling through a high street agent.
The difference is where that money is being spent. Using equity can create options, keep rent coming in for most of the process and remove the need to spend thousands getting an empty property ready for sale.
And that’s where having different options to sell can make all the difference.
Where possible, we sell without disturbing tenants and use the equity to attract chain-free investors who can complete in 56 days.
Where necessary, we can also use some of that equity to help tenants so they are happy to surrender possession voluntarily rather than the landlord having to chase possession through the courts.
Our fee comes from the agreed amount, and we pay the solicitors of your choice from our list of approved, independent panel solicitors. It also covers other costs such as EPC certificates and listing materials, so there are no additional costs on top.
Of course, there is nothing stopping sellers negotiating with buyers and tenants themselves to secure a faster sale and voluntary surrender. But for landlords who don’t want to manage buyers, tenants, solicitors and the sales process themselves, that’s where our experience comes in.
Nobody knows exactly what future property tax changes will eventually look like, and making a rushed decision based on political speculation rarely puts a landlord in the strongest position.
But uncertainty can be a good reason to look closely at what you own.
Selling from a position of strength means you’re not dependent on one buyer, one route to market or one outcome.
You have choices, and if your property is still generating rent, you have the time and income to choose the option that works best for you.
Whether you want to sell one property, several properties or an entire portfolio, Landlord Sales Agency can look at the options with you.
Before spending another £10,000, £20,000 or £30,000 on a property you’re no longer sure you want, find out what it could put in your bank instead. A no-obligation conversation with Landlord Sales Agency could give you a very different view of your options.
