Major landlord to bail out of the PRS

Major landlord to bail out of the PRS

0:05 AM, 26th November 2024, About A week ago 12

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A major landlord has unveiled plans to sell its private rented sector (PRS) business portfolio of 3,147 homes across 53 schemes in Greater London.

London & Quadrant Housing Trust (L&Q) is looking for buyers to take on its Metra Living arm.

The move is part of L&Q’s strategy to focus on its core business of providing social housing.

Most of Metra Living’s portfolio was built within the last decade.

The announcement comes days after housing minister Matthew Pennycook dismissed landlord worries about a poorly performing court system unable to deal with the abolition of section 21 ‘no-fault’ evictions under the Renters’ Rights Bill.

Highly successful PRS business

The group chief executive, Fiona Fletcher-Smith, said: “We’re proud to have built up a large and highly successful PRS business since entering the market in 2015.

“However, in recent years the social housing sector has faced economic volatility, policy shifts and funding uncertainties.

“In response, we have a clear strategy which is focused on simplifying our business, prioritising our core purpose as a social housing provider, and ensuring every L&Q resident has a safe and decent home with access to services they can rely on.”

Sale of Metra Living

She adds: “The sale of Metra Living will support this drive, enabling us to invest even more in our existing homes and services, and support the delivery of our longer-term objectives to build more of the affordable homes this country so desperately needs.”

The sale will include the transfer of Metra Living’s operational platform and team.


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Reluctant Landlord

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9:29 AM, 26th November 2024, About 7 days ago

so selling up a profitable side of the business to allow the money from the sale to be put towards the upkeep of another part of the business, where the sector you intend to focus on itself is already in crisis with no immediate growth ahead.

Does not make sense.

It seems to me it is more likely that this is a 'bail out quick' strategy - before the RRB PLUS everything else that is being thrown at the PRS hits...

L&Q have over 10k homes in their PRS bag...
It' not what they are saying that's worrying, it's what they are NOT!

Wonder IF they sell and who to?

Nick Newbury

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9:47 AM, 26th November 2024, About 7 days ago

Local to where I am was a large office block which was converted into flats for rent only by one of the big pension schemes, it would take some financial clout to buy that many homes. As reluctant Landlord highlights its whats not being said about this potential sale.
I bought my 2 BTL as part of my pension planning but all govt want to do, blue or red, is to make that side of my planning near impossible.

Judith Wordsworth

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10:02 AM, 26th November 2024, About 7 days ago

One wonders why they are not selling to the Local Authorities as they are crying out for housing.

If a major PRS provider is getting out, with such poor excuses, that really does cause more concern for th3 sector as a whole.

Stella

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10:03 AM, 26th November 2024, About 7 days ago

Reply to the comment left by Reluctant Landlord at 26/11/2024 - 09:29I wonder if Blackstone will buy them out as they seem to be very busy in the uk housing market and Starmer entertained them at Downing Street recently.

Stella

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10:10 AM, 26th November 2024, About 7 days ago

Reply to the comment left by Judith Wordsworth at 26/11/2024 - 10:02
I wonder if this is the beginning and more will jump ship.?

EL1111

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15:13 PM, 26th November 2024, About 7 days ago

I said at the beginning of this new Government, there will be no small private LL's. The rental industry will just become a numbers game, big numbers. The banks, wealth management companies, pension providers will take over it all. They will buy up all the small landlord portfolios on a take it or leave it basis. This government has got special plans for us all, no farmers, no land, food shortages, no homes, how many have they built so far? It's very concerning, these big companies such as Metra Living should at least have the guts to give the real reason for getting out, and the rest of us should be warned.

Reluctant Landlord

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15:48 PM, 26th November 2024, About 7 days ago

Reply to the comment left by Stella at 26/11/2024 - 10:03
we shall see eh?

Reluctant Landlord

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16:05 PM, 26th November 2024, About 7 days ago

Reply to the comment left by Stella at 26/11/2024 - 10:10The current B2Rent market seems to be on hold - people have already been laid off.
Where developers are trying to complete projects they are having to tell councils the number of social homes as part of the kick back for permission to build, has to be cut back due to rising construction costs and supplies etc.
Lots of plans have been mothballed and no big projects have been announced.
Vistry are in chaos. Over egged the portfolio and have now shot themselves in the foot.
The construction industry is barely existing.
Planning we all agree needs to be sorted out, but this is going to take years. Delays are causing cost explosions and apathy to apply as long waits for decisions
While NHBC has just announced it wants to fund construction skills training etc, there is no details and again this will take years.
The Budget is murdering any prospect of hope and growth potential.
The RRB is going to upset a lot of things that
are already in flux, providing less certainty for the PRS AND tenants alike.
Selective Licencing will be coming in to all of the PRS at some point (I predict). Bankrupt Birmingham Council now looking at licencing for supported accommodation too as the next cash cow - other couoncils will follow.
Council tax also going up as of April - probably to the max that every council can demand - 5%.
SDLT reverts - more cost to buy for everyone, especially LLs.
Add to that the expected low growth and low sales figures that will inevitable follow this winter period..
and a fair wind of S21's issued pre RRB
I smell recession...

Stella

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17:37 PM, 26th November 2024, About 6 days ago

Reply to the comment left by Reluctant Landlord at 26/11/2024 - 16:05With labour stifiling growth the way they appear to be I would be surprised if there is not a recession coming.
The possibility of Labour building 1.5 million affordable homes is fantasy.

Peter Merrick

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21:39 PM, 26th November 2024, About 6 days ago

No way would they be selling a profitable business in a hurry unless they can see serious stormy waters in the near future.

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