Do I sell my letting property?

Do I sell my letting property?

10:56 AM, 5th April 2023, About A year ago 41

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Hello, Not a long one this!

I’ve had a 3 bedroom semi for 4 years, let it to a single mum with no real issues but she’s now given notice as she’s met a partner.

Do I sell?

The house is fully paid for, EPC grade C, fully checked and up to date regarding gas/electric etc.

The main reason for this question is up and coming changes in legislation and CGT, reading about issues with non paying tenants, house probably needing a new bathroom/kitchen in the next 5 years (but that might be me being picky).

House is a k rendered 3 bedroom with extremely large garden and allotment, located in a small cul-de-sac in Yeadon, Leeds, west Yorkshire and valued at £180k.

Am I safe continuing renting, or should I get out while I can and bang the money in a high interest account?

Thanks in advance,


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Reluctant Landlord

11:26 AM, 5th April 2023, About A year ago

for what its worth its really a one question answer.

Do you want to be a LL for the forseeable future bearing in mind changes ahead. Yes or No.

If you bought as a long term investment then 4 years is nothing on the scale of things, so you either get out now or stay in for the long haul.

If you get a tenant in now the chances are they will be long term so choose them wisely.

If you don't want the headache then put on the market.

Its not always about the profit made or investment in a property, its now about if you want to be in the PRS or not. That's what this issue is.

Mark Holliday

12:03 PM, 5th April 2023, About A year ago

Only you can truly answer this question as it is dependent on your own circumstances.

On the one hand, you have a great EPC rating, and the property does not need substantial investment in the forthcoming years other than maintenance. You have already paid the premium stamp duty on a second property as well as the other costs of purchase. The rental market is very bouyant at the moment. Leeds is close to your location and its economics for the foreseeable look pretty good.

On the negative side, you have exposure to rising interest rates and adverse tax changes (there have been enough articles on this for no further elaboration here). You need to find a new tenant, but then you have already set up deposit protection services and presumably have systems in place to find and reference new tenants. If you sell now, then you will have capital gains tax to pay and the limits for this new tax year have decreased to £6k per person (from £12.3k).

As such, do you research, put items for and against on a piece of paper, and this will give you the answer that you seek.

David Houghton

12:06 PM, 5th April 2023, About A year ago

Yes as DSR says it's a lifestyle question for you. There may or may not be some choppy waters ahead. Gove is a person who delivers, but amongst all the turmoil nothing may happen.

Another question is how much equity you have. From your description it sounds a really nice house bit that doesn't necessarily translate into rate of return. In my patch I could buy 3 2 bed flats for 180, EPC A, triplet glazing etc. Good luck with whatever choice you make

Judith Wordsworth

12:29 PM, 5th April 2023, About A year ago

Work out how much you would get on say a 1 year bond at 4.45%.
What’s the rental income less costs and tax? Work on 10 months income.

What legislation may be coming in to cost extra.
The threat of Labour’s Right to Buy, at a discount, should they become the next government.

If you still want to be in the PRS, I believe property prices will drop considerably mid to end 2027 going in to 2028, then buy in again then.

Will be fewer rental properties so higher rents.

Freda Blogs

14:02 PM, 5th April 2023, About A year ago

As well as the observations by others as to reletting/sale, my thoughts go to whether there's scope for further development on the large garden and allotment?

What that may look like and how you go about releasing it (with or by whom) would inform my decision whether to relet or sell. Sort out your alternative options before making a decision so you don't prejudice any opportunities.


14:32 PM, 5th April 2023, About A year ago

Dont delay, sell today. I have already sold 12 (6 to go when the tenants move out). Fewer properties wont mean higher rentes as people can't afford them now. It will mean a larger number of defaulters. Add in th factor that one way or another rent controls are coming our way. If Labour get in the like of Diane Abbot will go after the PRS with a pitchfork.


14:32 PM, 5th April 2023, About A year ago

Reply to the comment left by David Houghton at 05/04/2023 - 12:06
Yeah forgot to mention the house will return £850 to £900 pm and I have invested a total of £110k into the house (including the cost of the house) so should return a profit of £60/70k on the sale minus cgt as it's fully paid for.


14:40 PM, 5th April 2023, About A year ago

Reply to the comment left by DSR at 05/04/2023 - 11:26
The original plan was to keep being a landlord as it tops up my pension by £850 every month with (for 4 years) not a lot of hassle. The worry is a nightmare tenant or higher tax on the capital gains when I do decide to sell (should have £70k profit) higher interest rates aren't a problem as to here's no mortgage.


14:43 PM, 5th April 2023, About A year ago

Reply to the comment left by Mark Holliday at 05/04/2023 - 12:03
Yeah pen and paper at the ready, I've a month to decide.


14:46 PM, 5th April 2023, About A year ago

Reply to the comment left by Judith Wordsworth at 05/04/2023 - 12:29
On the list is a couple of meetings with the local building society 👍
I just don't want to shoot myself in the foot by selling up and none of the threats actually happen.

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