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

Retired banker

11:33 AM, 16th December 2023, About 5 months ago

Reply to the comment left by Gary Dully at 16/12/2023 - 09:11
You may be getting a bit carried away with your conspiracy theory. Can’t argue about the anti personal landlord policies inflicted by this administration, but the last thing banks want is to manage resulting increase in mortgage arrears and possessions. And why would you even think that banks desire to become institutional landlords?

These policies hurt banks, not benefit them as the resulting increased provisions and bad debt hit the bottom line.

Grumpy Doug

18:46 PM, 16th December 2023, About 5 months ago

Reply to the comment left by Retired banker at 16/12/2023 - 11:33
"And why would you even think that banks desire to become institutional landlords?"
Look up Citra Living. A Lloyds Bank brand with ambitions to grow a portfolio of 50,000 properties. I'd say that counts as an institutional landlord. They bought over 600 properties from Barratt Homes earlier this year. I'm sure you must have read the cries of horror from the likes of No-Shelter and Generation Rant about them depriving first time buyers from the opportunity to buy houses. No? Oh well, no surprises there!
Mind you, given Lloyds' abject failure back in the 80's/90's with Black Horse Agencies, I guess the jury is out whether they'll make a success of being a large scale landlord.

Simon Parker

4:53 AM, 21st December 2023, About 5 months ago

Reply to the comment left by Retired banker at 16/12/2023 - 11:33It's not a conspiracy!
"Lloyds eyes up 50,000 homes in a push to become UK’s largest landlord"
It appears Cameron and Osborne cooked up a deal with Blackstone (who bought Lloyds with their help!) to destroy the PRS.
Then Osborne got a top job with Blackstone 🤦‍♂️

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