Landlords: Is it time to sit tight or make a move?

In Property118’s latest landlord sentiment survey, more than 65% of respondents said they plan to sell one or more properties over the next three years or leave the sector completely.

Some are already doing it. But for landlords who have decided they want to sell and haven’t yet started, there is a question worth asking: what are you waiting for?

A better market? A quieter moment? The tenant to leave?

There may be a good reason to wait. But if you already know you want to release your equity, reduce your responsibilities or retire, it is worth checking whether waiting is helping you get there – or holding you back.

Is staying still paying off?

The decision is rarely simple. Higher rents can make keeping a property attractive, particularly where tenants are reliable and borrowing is low. But with higher property income tax rates due from April 2027 for landlords who own personally, and the risk of further interest rate rises, it’s understandable that some landlords feel any extra rent coming in will simply be swallowed up by higher costs.

The frustration in Property118 comments from established landlords is clear. Gas safety checks, electrical inspections, deposit paperwork, licensing and tax administration all need attention. Pegasus Insight reports that self-managing landlords already spend an average of 51 hours a month managing their properties.

With the PRS database and Making Tax Digital adding to the workload, dealing with one new requirement only to find another arriving behind it can feel like running on a hamster wheel – working harder and longer without getting any further forward.

It’s enough to make landlords think: Stop the wheel, I want to get off!

If you are torn, selling one or two properties could reduce borrowing, remove the most demanding rentals and release money to enjoy, while keeping the properties that still work for you.

What would waiting need to achieve?

If you are waiting for a higher price, how much higher would it need to be to justify another year’s costs and responsibilities?

More than half of respondents to Property118’s latest survey expect property values to stagnate or fall behind inflation over the next three years. That is an expectation rather than a forecast, but it challenges the assumption that holding on will necessarily leave you better off.

There is also the buyer’s position to consider. The Bank of England says higher energy prices are adding to inflation pressures, while mortgage rates and borrowing costs are already higher than before the conflict in the Middle East.

If global events keep inflation higher and mortgage rates rise further, buyers’ budgets could tighten again. Even a mortgage-free landlord can feel that through what a buyer can afford to offer.

That does not mean prices must fall. It means waiting carries a risk as well as a potential reward.

Investors will still see opportunities, including landlords building portfolios while others reduce theirs. If you want to sell, it makes sense to reach those buyers too – particularly when your property already has a tenant and a rental income.

What if you want to sell but think you can’t?

For some landlords, the decision is already made. The difficulty is knowing how to sell without first getting vacant possession, losing the rent or unsettling a tenant.

That is where Landlord Sales Agency can help.

The owners of a tenanted flat in Camberwell wanted to stop letting it and use the proceeds to reduce their own home mortgage. However, their tenants had a fixed-term agreement with substantial time remaining.

Our team explored the options and secured a buyer who would keep the tenants. We then coordinated the tenancy information, rent arrangements and solicitors’ enquiries to bring the sale through to completion.

The seller’s response captured what finally finding a workable route meant: “Landlord Sales Agency were miraculous, I’ve been trying to sell this property for the last 26 years! Landlord Sales Agency have been the only people who have been able to help us—we can’t thank you enough.”

After wanting to sell for 26 years, the owners secured a buyer through Landlord Sales Agency in around four weeks and completed around nine weeks later, less than 14 weeks to resolve a long-standing problem, with the tenants staying and the sellers finally able to move on.

Selling without letting a good tenant down

For the owner of a Cardiff apartment, protecting his tenant was central to the sale. She had lived there for more than 13 years, and they had a very good relationship.

The property was over three hours from his home, his health was making the distance harder to manage, and it had already spent 13 months on the market before he approached our team.

We worked directly with the tenant, arranged photographs and a video tour during the pandemic, and found an investor who would keep her in place. On completion, we coordinated the handover to the new landlord and managing agent.

As the seller explained: “I needed a company that I could trust and most importantly one that understood this and would look after my tenant through the process of finding another landlord/investor to purchase the property, this they did.”

High service charges made this property harder to sell, but our team found an investor who would keep the tenant. A sale was agreed in eight weeks and completed under 12 weeks later – less than 20 weeks from start to finish.

Find out what making a move would mean

You do not need an empty property to start, and you do not need to commit to selling your entire portfolio.

Landlord Sales Agency can assess one property, several properties or a complete portfolio, explain the likely price and identify what needs to happen to secure a sale. Our 30,000+ registered buyers include investors looking for properties with tenants already in place.

And, best of all, by selling with the tenant in situ, rents continue and if the property fails to sell for a price you are happy to accept, there’s no reletting ban.

For suitable properties, sellers walk away with around 85-90% of a realistic vacant-possession value instead of paying commission or fees. The exact figure depends on the property, tenancy, work required and speed of sale.

Buyers pay a non-refundable reservation deposit when their offer is accepted, giving them a financial commitment to the agreed sale. Major survey findings may still require discussion, but changing interest rates or personal circumstances are not grounds for simply renegotiating the price under our buyer agreement. Sellers can plan ahead with greater certainty

All buyers are chain free and must be able to complete within 56 days of a seller being ready to proceed and with our team actively progressing the sale.

Our latest figures show a median completion time of around 16 weeks across our last 12 sales, compared with 18 weeks over the last 12 months. As our examples above demonstrate, some completions are considerably quicker; others need more time to resolve tenancy, legal or property issues – even with a team of professionals giving them dedicated attention from start to finish.

It’s why we say our real work only starts AFTER we’ve found a buyer, and why some landlords put off selling when they imagine managing all that themselves.

The good news is landlords don’t have to. Our team takes responsibility for progressing the sale, resolving problems and keeping everyone working towards completion right until the seller receives their money and the buyer their keys.

We don’t know of any other agent that does half of what we do to make sure sales complete – and, judging by our testimonials, neither do our sellers.

If you already know you want to sell, the form and tell us a bit about your property to find out how much our service would cost, and how Landlord Sales Agency could help you make your move.