Landlords sell rental properties in record numbers

Landlords sell rental properties in record numbers

0:01 AM, 15th December 2023, About 5 months ago 13

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One firm of chartered surveyors and auctioneers has revealed it has seen a 300% increase in instructions to sell residential buy to let properties in the past five months.

Manchester-based Landwood Group attributes the trend to the challenging conditions faced by BTL investors.

It points to punitive tax changes, high mortgage interest rates, increasing red tape, and regulatory uncertainty, which have caused costs to skyrocket.

Landwood says it has seen a rise in the number of landlords coming to them to auction their properties with many finding it too challenging to continue operating.

The firm says the cases range from sales of single houses to portfolios of more than 100 properties.

Circumstances are very challenging for many private landlords

Mark Bailey, a partner in the firm, said: “The circumstances are very, very challenging for many private landlords at the moment.

“It’s increasingly difficult for many to afford the rising costs of owning rental properties, let alone make a profit.”

He continued: “Simply put, many landlords are unable to keep their head above water.”

He adds that the ‘ongoing uncertainty’ is ‘prolonging the pain’ for many landlords.

‘Landlords are facing significant challenges’

Mr Bailey said: “Landlords are facing significant challenges not just in the short-term but in the long-term as well.

“We are seeing this in regard to regulation – while changes to Section 21, so-called ‘no-fault’ evictions, have been kicked into the long grass, there is little clarity on whether they will come into force in the future.”

He added: “It’s a similar situation with regards to potentially tougher energy efficiency legislation.

“It means it’s incredibly challenging for landlords to plan ahead. They need more clarity and an end to this uncertainty.”


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Comments

David100

11:46 AM, 15th December 2023, About 5 months ago

The Government seems determined to destroy the private rented sector, so why dont they offer to buy up properties from private landlords (with tenants in place) at fair market rates? Instant council houses. Then they can show us what great landlords they are!

Michael Booth

17:27 PM, 15th December 2023, About 5 months ago

The Conservative party have declared war on landlords, what do you think liebor are going to do ,we have already heard soundbites of raynor regarding this issue , time to move on and get out.

andy_pennington

19:28 PM, 15th December 2023, About 4 months ago

Have there been any indications of how a landlord will be able to sell a property once section 21 has been abolished. Is it only with a sitting tenant - thus depressing the price? Sorry if this is slightly off topic. I don't want to evict anyone, but I want to be able to be in a position to run down my portfolio as I get older.

Trapped Landlord

21:02 PM, 15th December 2023, About 4 months ago

Reply to the comment left by David100 at 15/12/2023 - 11:46
I have a better idea, why not just introduce nationwide compulsory purchase orders on anything that the incoming labour government deems to be uninhabitable. That way they can snap up millions of private rented properties at site value, put us all out of our misery and then we can be the ones pointing the finger.

Tom C

21:04 PM, 15th December 2023, About 4 months ago

Reply to the comment left by andy_pennington at 15/12/2023 - 19:28You will still be able to evict to sell. The plan is to end evictions without a stated and valid reason to evict.

Selling, landlord (or immediate family) moving in, rent arrears and anti-social conduct will all be valid reasons to evict.

andy_pennington

21:23 PM, 15th December 2023, About 4 months ago

Reply to the comment left by Tom C at 15/12/2023 - 21:04
But this isnT a current section 8 cause , is it?
Im guessing all bets are off if/when Labour get in, though. It doesnt sound ideal..,

Peter Merrick

22:47 PM, 15th December 2023, About 4 months ago

Reply to the comment left by David100 at 15/12/2023 - 11:46
Some councils are starting to do that sort of thing as it saves the cost of temporary housing, but the sums involved to effect a wholesale transformation of the PRS would be astronomical. Plus, with RTB still in force, they would effectively be at risk of giving the money away to a tenant that exercises that right in the future. And none of this changes the actual number of houses available for people to live in!

Gary Dully

9:11 AM, 16th December 2023, About 4 months ago

The whole thing was planned by the Tories from day 1.
Their chums at the banks are to become the country’s landlords, they have even already announced it.
Removal of allowances
Section 24
LHA frozen
Compliance costs
License Fees
Empty House Surcharges
Capital Gains Allowance Slashed
Anti Landlord Hate Speech
Labour Party cheers them on from the sidelines : (They love a good bank bonus)
Shelter bribed with grants to stick the boot in.

It’s like walking down a dark alley with a daffodil as a weapon against them.

David100

9:23 AM, 16th December 2023, About 4 months ago

Reply to the comment left by Peter Merrick at 15/12/2023 - 22:47
With that logic, there is no point to build new council properties, while RTB is in place?

rebecca anelay

11:30 AM, 16th December 2023, About 4 months ago

Reply to the comment left by andy_pennington at 15/12/2023 - 19:28
It is my understanding that we will need to go to court under new rules when we use the new grounds ie selling. I read this could cost Thousands....and whilst the Tories said this won't happen until the courts are reformed, Labour have already said they will ban Section 21 within days when they come to power....no mention of reforming the courts so it could takes months and months and thousands to actually get a house back empty and ready to sell. For me the stress and uncertainty is too much...I have only I house left now. I decided to sell now as I still believe the dire state of the economy will cause prices to dip, Labour will be here soon with Tenancies for life, rent caps, Super Strict EPCs etc etc

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