Landlords split on selling property amid rising costs

Landlords split on selling property amid rising costs

0:04 AM, 7th November 2023, About 4 months ago 4

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Landlords in the UK have different plans for their portfolios in the next 12 months, with two-thirds (66%) of landlords not wanting to sell any of their property, research reveals.

The findings from Landbay also show that one-third (34%) are considering selling some or all of their property – but just 10% of these landlords will sell up entirely.

Their reasons for selling are the rising costs of property investment, such as higher interest rates and taxation, and the lower capital gains tax.

However, some landlords are also looking to buy more property, either to expand their portfolios or to restructure them.

‘One in three landlords are thinking of selling’

Landbay’s business development director, Rob Stanton, said: “Our survey found that one in three landlords are thinking of selling some of their property but not all of it.

“They intend to stay in the market but are trimming their portfolios and some are reorganising as they both buy and sell property.

“Higher costs are typically why landlords want to sell, not just interest rates but taxation is also an issue for some.”

He adds: “On the positive side, two-thirds of landlords have no intention of selling and 36% of those are looking to buy property.

“The market is changing and landlords who see opportunities are taking them while others are rethinking their strategy.”

36% of landlords who do not intend to sell

According to the lender’s survey, 36% of landlords who do not intend to sell are planning to buy more property in the next year, while 90% of landlords who are thinking of selling only want to sell some of their property.

The survey also reveals a regional variation in landlords’ intentions.

In London, half of the landlords want to sell some property, while in the South of England, 29% of landlords have the same intention.

In the North and the Midlands, the percentages are lower, at 25% and 22% respectively.


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Comments

northern landlord

12:10 PM, 7th November 2023, About 4 months ago

Another spin loaded “article” by a company with a vested interest in landlords buying more property. According to HMRC data there are about 2.7 million landlords who pay tax. So if some 33% of landlords plan to offload at least one property in the next 12 months that is a potential loss of 890,000 homes. 66% of landlords won’t sell and 36% of those (24%) plan to buy so we could reduce the potential loss by some 24%. But this still leaves a potential loss of 676.000 PRS homes. With UK average occupancy running at 2.4 per household this could mean 1.6 homeless people.
Of course what people say they would do in surveys does not always play out in practice. It’s easy to be brave or outspoken when you are not actually putting yourself on the line and making a commitment.
There are landlord exit believers and landlord exit deniers. I am a believer and as an older landlord have begun to offload property before the law essentially takes control of it away from me. Better to have the money in the bank nowadays.

Easy rider

16:02 PM, 7th November 2023, About 4 months ago

All landlords should be considering selling. Or buying. Or holding. It’s all part of the SWOT analysis.

I fear it’s too late for many to get out.

Crouchender

18:55 PM, 7th November 2023, About 4 months ago

Reply to the comment left by Easy rider at 07/11/2023 - 16:02
Let me just recheck ...1/3 want to sell. 1/3 don't want to sell but buy. Looks like Landbay thinks supply is coming into the market to manage demand!!!!

Err... He is trying to talk up his business. Sort your arrangement fees out first.

GlanACC

19:12 PM, 7th November 2023, About 4 months ago

I am an older landlord, sold 12, 6 left to sell

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