Exodus of private landlords ‘exaggerated’ – claim

Exodus of private landlords ‘exaggerated’ – claim

10:06 AM, 10th January 2023, About 2 years ago 32

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A survey has revealed that landlord confidence is ‘robust’, though many worry about the government’s meddling in the private rented sector (PRS) and want changes to capital gains tax allowances reversed.

The findings from property lending experts, Octane Capital, also highlight that landlords are concerned about the increasing day to day cost of their buy-to-let investment driven by the cost-of-living crisis.

The survey of 2,000 landlords also found just 8% of investors had reduced the size of their BTL portfolio over the last year.

‘The exodus of landlords from the rental sector’

Jonathan Samuels, the chief executive of Octane Capital, said: “It appears as though the exodus of landlords from the rental sector has been somewhat over exaggerated with just a small proportion opting to reduce the size of their portfolio in 2022.

“That said, while we’ve seen a degree of stability return following a shambolic mini-Budget last September, many buy-to-let investors remain cautious about the year ahead.”

He added: “This caution is likely to prevent them from investing further until a greater degree of certainty returns, although we must also tip our hats to the government in this respect, as their consistent attack on the sector remains the number one concern.”

Capital gains tax allowance changes reversed

Along with 41% of landlords who would like to see capital gains tax allowance changes reversed, 60% don’t believe that interest rate hikes have peaked.

Landlords also don’t believe the market will be more settled during 2023 and most say their biggest concern is the government’s legislative interventions.

Many also worry about the increasing running costs of buy-to-let investment such as energy bills and maintenance.

The day-to-day management also ranked as one of the biggest challenges facing landlords – and the increased cost of borrowing.

Increasing the size of their buy-to-let portfolio

As a result of their concerns, just 16% of landlords intend to increase the size of their buy-to-let portfolio over the coming year.

And when asked which government legislative change they would most like to see reversed, the recent changes to capital gains tax allowance ranked top.

The government plans to reduce the CGT tax-free allowance from £12,300 to £6,000 in April, with a further reduction to just £3,000 by 2024.

The ban on Section 21 evictions and potential improvements to EPC ratings also ranked highly among the changes landlords would most like to see reversed


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Old Mrs Landlord

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15:03 PM, 15th January 2023, About 2 years ago

Reply to the comment left by JamesB at 13/01/2023 - 09:03
Wow, rent doubled in four years and you think it's a "terrible proposition"! I suppose this is in London. Here in the West Country none of our six properties' rents have doubled in fourteen years or more. However, if they were all still mortgaged we too might well be struggling to make it pay.

Morag

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15:21 PM, 15th January 2023, About 2 years ago

Reply to the comment left by Old Mrs Landlord at 15/01/2023 - 15:03Yes, rents in my remaining three properties haven't increased by more than 20% since I bought them in 2005, and that increase has only been in the last two or three years. I personally haven't made the increase for my existing tenants. Any growth in their value was wiped after 2008, and even now I don't think they'd be worth much more than I paid for them, especially if I end up selling with tenants in situ. Ridiculous rents and sale prices are by no means everywhere.

Mr.A

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15:42 PM, 15th January 2023, About 2 years ago

Reply to the comment left by Morag at 15/01/2023 - 15:21
Hi ,
So why put up with all the hassle, you would probably now get a better hassle free return by sticking the Cash in a high yielding account.
Best thing would no more council correspondences.

Crouchender

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16:10 PM, 15th January 2023, About 2 years ago

Reply to the comment left by Mr.A at 15/01/2023 - 15:42
My London rents from 2016 to 2022 have gone up 60%. This is not sustainable and mainly due to the reduction in supply of recent years. Well done the council for bring in Selective Licencing. It is going to get worse for tenants.

Mr.A

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16:15 PM, 15th January 2023, About 2 years ago

The Crunch will come when tenants can not genuinely afford the rent increases anymore but the Government and the clowncils keep adding to the expenses the Landlord has to pay .

Morag

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17:26 PM, 15th January 2023, About 2 years ago

Reply to the comment left by Mr.A at 15/01/2023 - 15:42You're right, the only reason really is that I don't want to evict my tenants from their homes. We don't have much equity in the flats, so selling to another landlord would probably wipe it out. The tenants are reliable and easy to deal with, and we are still in profit, albeit mortgage interest has increased significantly. We may be forced to sell eventually if things get much worse, but we're just riding it out meantime for the tenants' sake. Hopefully they will leave of their own accord sooner or later.

JamesB

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9:03 AM, 16th January 2023, About 2 years ago

Reply to the comment left by Old Mrs Landlord at 15/01/2023 - 15:03
The rent may have doubled to £2000pcm (from a lady who paid £1000 where I didn't raise the rent by 1p in 7 years). However, as a 40% tax payer, with s24 now in full effect, with mortgage rates about to be 6%, epc £10k spends coming, and this particular desirable house worth £500000, yes, I do think it is a terrible proposition. If I didn't, it wouldn't currently be empty and on the market, would it?

cashcow

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11:37 AM, 16th January 2023, About 2 years ago

I sold one last year and tried to sell one this year but ended up reletting it with a large increase in rent, I wonder who is really behind this nonsense survey .

Old Mrs Landlord

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17:25 PM, 16th January 2023, About 2 years ago

Reply to the comment left by JamesB at 16/01/2023 - 09:03
Yes, as the saying goes, circumstances alter cases and clearly different parts of the country are in some ways different worlds.

Ann

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13:31 PM, 20th January 2023, About A year ago

Reply to the comment left by DSR at 10/01/2023 - 17:47
We have 3 properties, all of them since 2016, with the same tenants in each. 1 is currently on the market.

Although, our reason for selling is due to retirement. The properties were a capital investment for retirement. The rent has now paid off our mortgage, and now we want the capital returned.

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