Half of tenants forced out by landlords selling up – survey

Half of tenants forced out by landlords selling up – survey

9:35 AM, 16th May 2024, About a month ago 16

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A landlord sell-off is a major driver of tenant moves after 50% of property professionals said that was the main reason for renters moving home last year, a survey has found.

According to PayProp, this is a growing concern – and something that campaign group Generation Rent has highlighted recently.

Just 11.3% of those surveyed said eviction was the cause for a move.

The rental payment platform’s survey also showed a high number of landlords – it’s more than 54.5% – are actively looking to sell rented properties at the time.

‘Why are so many landlords selling properties?’

The firm’s managing director, Neil Cobbold, said: “The question we should be asking is, ‘Why are so many landlords selling properties?’

“One reason may be the age of the average landlord, which according to the latest English Private Landlord Survey was 58 in 2021.

“By now, they may be thinking about retirement and taking the money they have invested in property as an annuity.

“However, in other cases, a lack of profitability will be an issue.”

Make life uncomfortable for many landlords

Mr Cobbold points to an absence of tax reform to address mortgage costs, higher buy to let mortgage rates and increased regulation combining ‘to make life uncomfortable for many landlords’.

He adds: “If this trend towards fewer PRS properties is going to be reversed, the Government has to find a way to keep landlords in the PRS and encourage more investors to join the sector.

“If not, supply will remain under pressure and rents will continue to rise, making life more difficult for tenants who are already feeling squeezed.”

The firm’s Rental Confidence Index also highlights that 66.7% of landlord properties are being sold to first time buyers – and are lost to the PRS.

Rising tide of tenants being made homeless

This week there was a spat between the National Residential Landlords Association (NRLA) and Generation Rent over the rising tide of tenants being made homeless.

Firstly, the NRLA’s chief executive, Ben Beadle, said: “Landlords selling up is the single biggest challenge renters face.

“The only answer is to ensure responsible landlords have the confidence to stay in the market and sustain tenancies.”

But Ben Twomey, the chief executive of Generation Rent, fired back: “There will always be some landlords wanting to sell, for example, because they are retiring or because their mortgages have become too costly.

“The short-term issue is that tenants have an appalling lack of protection when landlords choose to sell up – even under the new Renters (Reform) Bill as proposed, tenants would only have two months’ notice when evicted for this reason.

“Landlord groups won’t lift a finger to improve this position for tenants, while using the risk of homelessness to demand their own concessions from government.”


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Comments

Reluctant Landlord

10:12 AM, 16th May 2024, About a month ago

so why doesn't the NRLA push the point further that LL are also selling up as a direct result of the RRB?

Gen Rent have changed their tack now towards seemingly admitting LL's are evicting because they want to sell so the NRLA need to run with this big time and use this as evidence the content of the RRB is the reason for this, so THIS needs to be addressed.

If the route cause of evictions is selling, then that's that needs to be the focus, not on giving tenants more notice period when it does happen ! Even GR can now be clearly accused of backing a bill that will mean more tenants are evicted as opposed to less. Why doesn't NRLA/BB throw that back???

Cider Drinker

10:50 AM, 16th May 2024, About a month ago

If being a landlord was an attractive proposition, landlords would be adding to their portfolios. Houses would be being built in greater numbers to satisfy BTL demand. More competition would keep rents competitive.

The government and the likes of Shelter (who don’t provide shelter to anyone) and Generation Rant have caused landlords to quit in large numbers. It is the government and the likes of Shelter/GR that are causing tenants to be evicted.

The flood of landlords quitting will become a tsunami. Many landlords are waiting for fixed term ASTs to end so that they can issue Section 21. Even punitive CGT isn’t stopping landlords choosing to remove the stress of a tenant from their lives.

If Section 21 wasn’t available, landlords would use Section 8.

Cider Drinker

10:59 AM, 16th May 2024, About a month ago

Ben Twomey is right,..
“There will always be some landlords wanting to sell, for example, because they are retiring or because their mortgages have become too costly.”
He could add that tenants’ rights are becoming too extreme and the tax system is vindictive and grossly unfair towards landlords.
Ben (Twomey) should also understand that we need to encourage a new generation of private landlords. I am in my 60s and my children no longer wish to become landlords when I inevitably die. This is a huge change from their positions just a few years ago. The result is that a number of families who have been reasonably good tenants will be evicted over the next year or so.

Julian Lloyd

11:01 AM, 16th May 2024, About a month ago

Reply to the comment left by Reluctant Landlord at 16/05/2024 - 10:12Absolutely agree. I wrote to the NRLA last week over the way they are handling the news of council fines against landlords. Almost encouraging such penalties. Whose side are the NRLA on!!

Jo Westlake

11:21 AM, 16th May 2024, About a month ago

I totally agree with Cider Drinker. One of my sons wanted to be a landlord and has been part owner of 4 of our BTLs for the last few years. He was our retirement plan. Now he wants to minimise his involvement due to Section 24.
Collectively our traditionally calculated Profit and Loss shows a profit of about £73000 less than we are collectively paying tax on. That's pushing us into tax bands we shouldn't be in, affecting the amount of tax free interest we can receive on savings, Personal Allowance, Child Benefit, etc.
I would love to buy more properties, specifically for people I know who are currently being evicted, but with Section 24 or the much higher mortgage rates for limited company purchases I can't justify doing so. I'm even seriously considering selling a couple of properties purely because of Section 24.

Michael Booth

11:36 AM, 16th May 2024, About a month ago

More to follow if liebor get in and start the epc debacle.

GlanACC

12:22 PM, 16th May 2024, About a month ago

GR Twomeys comments about selling up wont make a difference in the long run as hoses wont sing out of sight is wrong. True the housing stock won't be reduced by the houses sold by landlords may no longer be sold to other landlords for re-letting. The net properties available for letting will be reduced. However, not my problem, Sold 12 so far and only 1 went to another landlord .. and he has since sold it

Happy Landlord

13:02 PM, 16th May 2024, About a month ago

For gods sake it does not require a genius - George Osbourne was the start of this situation - driven by an inept civil service who could not see further than the nose on their face - plus a fair amount of green eyed envy. I am surprised that it has taken this long to work out - without Osbourne and his crazy attack on landlords we would all be in a very different place - lower rents, more housing I could go on - The only thing is that the Labour party will be 10 times worse - the politicians and the political class in general, do not understand the PRS, no one has attempted to understand basic supply and demand end of.

Reluctant Landlord

13:04 PM, 16th May 2024, About a month ago

Reply to the comment left by GlanACC at 16/05/2024 - 12:22
he fails to also understand if LL's are selling there isn't gong to be another LL willing to rent either - why do you think the first LL was selling?

Either that OR a bad LL will come in and take the property and not adhere to the regs and run the gauntlet of not being found out...the way the councils are NOT enforcing bloody obvious breaches (like lack of a SL) is only adding to the sense that yes, you can get away with it!

Cider Drinker

14:57 PM, 16th May 2024, About a month ago

Meanwhile, on BBC news this afternoon…

𝐍𝐞𝐰 𝐟𝐢𝐠𝐮𝐫𝐞𝐬 𝐬𝐡𝐨𝐰 𝐭𝐡𝐚𝐭 𝐦𝐨𝐫𝐞 𝐩𝐞𝐨𝐩𝐥𝐞 𝐡𝐚𝐯𝐞 𝐛𝐞𝐞𝐧 𝐬𝐭𝐫𝐮𝐠𝐠𝐥𝐢𝐧𝐠 𝐭𝐨 𝐦𝐚𝐤𝐞 𝐫𝐞𝐩𝐚𝐲𝐦𝐞𝐧𝐭𝐬. 𝐓𝐡𝐞 𝐧𝐮𝐦𝐛𝐞𝐫 𝐨𝐟 𝐡𝐨𝐦𝐞𝐨𝐰𝐧𝐞𝐫𝐬 𝐟𝐚𝐜𝐢𝐧𝐠 𝐭𝐡𝐞 𝐟𝐢𝐫𝐬𝐭 𝐬𝐭𝐚𝐠𝐞 𝐨𝐟 𝐭𝐡𝐞 𝐡𝐨𝐦𝐞 𝐫𝐞𝐩𝐨𝐬𝐬𝐞𝐬𝐬𝐢𝐨𝐧 𝐩𝐫𝐨𝐜𝐞𝐬𝐬 𝐡𝐚𝐬 𝐫𝐢𝐬𝐞𝐧.

So, the impact of high interest rates and the cost of living crisis isn’t confined to landlords and their tenants.

Homeowners were protected from repossession for 12 months. Remember this from the FT in June of last year…

𝐔𝐊 𝐛𝐚𝐧𝐤𝐬 𝐡𝐚𝐯𝐞 𝐚𝐠𝐫𝐞𝐞𝐝 𝐭𝐨 𝐰𝐚𝐢𝐭 𝐚𝐭 𝐥𝐞𝐚𝐬𝐭 𝟏𝟐 𝐦𝐨𝐧𝐭𝐡𝐬 𝐛𝐞𝐟𝐨𝐫𝐞 𝐫𝐞𝐩𝐨𝐬𝐬𝐞𝐬𝐬𝐢𝐧𝐠 𝐭𝐡𝐞 𝐡𝐨𝐦𝐞𝐬 𝐨𝐟 𝐛𝐨𝐫𝐫𝐨𝐰𝐞𝐫𝐬 𝐰𝐡𝐨 𝐟𝐚𝐥𝐥 𝐛𝐞𝐡𝐢𝐧𝐝 𝐨𝐧 𝐩𝐚𝐲𝐦𝐞𝐧𝐭𝐬 𝐚𝐬 𝐁𝐫𝐢𝐭𝐚𝐢𝐧 𝐠𝐫𝐚𝐩𝐩𝐥𝐞𝐬 𝐰𝐢𝐭𝐡 𝐚 𝐥𝐨𝐨𝐦𝐢𝐧𝐠 𝐦𝐨𝐫𝐭𝐠𝐚𝐠𝐞 𝐜𝐫𝐢𝐬𝐢𝐬.

I guess the can was kicked down the road in the hope of a May election. The polls weren’t as forgiving as the Tories had planned and the end of the road looms large for many homeowners.

People will lose their homes and be looking to rent.

Tories need to fix the PRS so that it is an attractive place to invest once again. They need to do it now with an emergency budget.

Tories broke it, Tories should fix it.

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