Exodus of PRS landlords picks up pace

Thanks

This is certainly the case as I have previously sold 12 properties owned by my limited company, and in fact it is likely that LTD companies have more properties in them than owned by individuals as LTD is the way to go for portfolios (4+ properties)

Reply to the comment left by Mark Pickersgill at 16/08/2023 - 13:11
On existing stock , for lowly geared (or mortgage free) landlords its great, rents rising and plenty of applicants willing to pay them. However, if you are looking at expanding, im not so sure. In my area at least , the prices are not dropping ! . I'm told that what we would generally regard as rental stock ( 2 bed terraces on not so great streets ) are not being whipped up by the usual cash rich local landlords at knocked down prices. They are being sold to young first time buyers who have been priced out of your 3 bed semis. Worryingly, unless prices are to crash, i just cannot see landlords coming in and saving the day. With interest rates anything like what they are and prices remaining anything like they are, why would you invest in when the interest payments alone is nearly the same as the asking rent ?

Reply to the comment left by TheBiggerPicture at 16/08/2023 - 13:15
I can just picture it now, from any current / incoming government or media outlet " rental market dries up as greedy landlords cash in on high prices whilst families are forced out of their homes for no good reason "

Reply to the comment left by Robin Pearce at 16/08/2023 - 15:36
Hate to say it but i cannot see any other outcome than a serious rental crisis. Our area has seen an enormous influx of eastern europeans recently and shows no signs of slowing, financially good for us as rents are sky high and endless applicants banging our office door down desperate to pay them. But as a society, the situation is beyond bleak. Unless a mass social housing programme is introduced or the government suddenly listens to landlords and gives them the incentives needed to spark a buy to let bonanza, how will things improve ?. One thing is for sure , no government , tory or the incoming labour one will interrupt the flow of net migration. Migration whether legal or illegal is the most sensitive topic imaginable, especially now and it is just not worth debating for them. Keeping their jobs is the
bottom line and they do not want to be cancelled now do they. Im afraid we are going to see more homelessness, more sofa surfing, more unauthorised sub letting , more cash strapped councils filling hotels / hostels. and the powers that be blaming every drop of it on us unscrupulous rogue landlords.

"Unless a mass social housing programme is introduced or the government suddenly listens to landlords and gives them the incentives needed to spark a buy to let bonanza, how will things improve ?."

How about the government control immigration?
Legal net migration 606k last year + illegals
= 5000 new homes needed per week !

I'm a Southampton landlord. 20yrs ago 5% of respondents to my adverts for flats to rent were from abroad Poland etc. Now 70% are.
This extra demand due to out of control immigration is what's sent rents & house prices up faster than inflation. Law of supply & demand.

There's nothing wrong with legal migrants or legal migration. But it now needs to be in balance. Zero net. One in one out. We're full

Reply to the comment left by Robin Pearce at 17/08/2023 - 10:18
I'm in a town just north of Nottingham, the situation seems similar here. 20 years ago, we were 80% housing benefit 20% working tenants. Now the vast majority of applicants are Romanian / Bulgarian of all ages. Where the universal credit claimants have gone, im sure i do not know, maybe they gave up. I think you can forget any effort of stemming net migration for now, its too politically sensitive.

High net migration is damaging to our environment & quality of life. Main road gridlock, more greenbelt being destroyed for housing etc.
Legal net 606k/year = 5000 more homes required/week 😧
It doesn't have to be inevitable.
People need to stop voting LibLabCon & switch to low migration parties such as Reform or UKIP
If not then they have no right to be NIMBYs when all the housing needed is proposed on green space near them

Reply to the comment left by Trapped Landlord at 17/08/2023 - 09:47
Largely agree with you.

In answer to your "why would you invest in property at the moment?" I would argue simply because like most markets property investing is cyclical and as they are not making anymore land and the population continues to increase the long term future is always assured for property owners. However, if your after the proverbial 'quick buck' now may not be a good time, but take a longer term view - as you should with all investments - and property is as sound as it has been for centuries.

My original point was that the more LL's that sell, the better it is for those that stay. It is for elected governments to deal with the societal issues but sadly, they usually need a crisis before they act - and their current policies are creating one - so it's only a matter of time!

Just came across this on another landlord board, it explains why landlords are leaving the PRS by giving an example of alandlords income in 2017 and now. - very professional

https://www.youtube.com/watch?v=NtVk3ERt66w