50,000 landlords have left the PRS since 2019

Interesting figures but the missing factor is how many of those 50,000 unincorporated landlords have disappeared because they have incorporated. Similarly with the reduction in declared rental income, it is probably now featuring in company accounts.

Just finished up my rental income numbers to submit to HMRC and this is the gig;
Total return on investment on 2 properties, both with 100% occupancy and rent receipts, is a big fat 2.9%.
Little wonder private landlords are selling up..
…perhaps those “housing charities” whining about what anti-social, greedy pariahs us private landlords are, might consider whether the level of risk/reward we are faced with is actually reasonable or sustainable, or should we just remain a social service in the absence of govt. investment in social housing?

The fall in income is not an anomaly, it is just people reducing their portfolios rather than stopping completely.
I personally know several landlords who currently have good tenants who will sell rather than re-let if the property becomes vacant.

I’m unincorporated, as the CGT to incorporate was prohibitive. I only have 1 rental property left (of 3) and my daughter is living in it.

Not only because I could see what further legislative landlord bashing was in the offing, but also not even making enough to pay income tax on due to rent owing, repairs for tenant damage, property upgrading – replacement double glazing by freeholder, etc and the stress caused by an abusive tenant I sold one per year from 2020.

Rentals have always been to those on benefits as, rightly or wrongly, believed people should have somewhere to call home. But honestly saddened by my nicely decorated “homes” were not only not looked after by tenants but actually trashed.

Still say the only way for any government to take note of what PRS landlords in the main do is for us to serve s21 on the same day with the same expiry date.

I would have loved a profit of £17k per property per year lol.

Multiple occupancy rules and increasing costs of regulatory burden probably account for some of the drop in profit by individual landlords it did for me before I sold .

The data shows that 50,000 landlords have completely left the sector it does not show those who have partially left the sector. Statistics can be manipulated to show almost anything and the government is very competent in manipulating figures to show what it wants to show.

In the year 2020-2021 my rent dropped, because of lockdown. Students didn’t want to pay their rent as universities had sent them home, so rather than loosing all the rent, a deal was struck for reduced rent. Also forlough was 80% wage so some of my tenants asked for a reduction- being nice I gave a reduction, and I know many landlords that did also, so that would account for the reduced rent.
I have started selling my properties as they became vacant, but the new capital gains allowance next year hits my take home,

Looks like HMRC receipts of CGT are going to rocket by y/end 21-22 and will continue over the coming years as private landlords bail out. Just watch the law of unintended consequences kick in and rents sky rocket for tenancies remaining in the PRS.

Reply to the comment left by Borrieboy at 25/11/2022 – 17:18
Fear not, Government will interfere when rents rise and make the situation worse. It has an excellent record in this respect.

The lovely team at iHowz are offering their membership with free tax investigation insurance. Something your accountant would be happy to charge over £250 for.
Even better, you get to take advantage of the current price before they put the price up in 2023.
https://ihowz.uk/

What with rising material costs, energy costs, licencing fees and the proposed EPC improvements, the taxman better hope we are able to collect our rents.