Majority of landlords do not plan to sell properties

Majority of landlords do not plan to sell properties

11:21 AM, 8th February 2023, About A year ago 11

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Seven out of 10 buy-to-let landlords do not intend to sell any of their properties in the next 12 months, according to a new survey.

The lender Landbay has revealed that landlords with smaller property portfolios of between one and three (78%) and four and 10 rentals (76%) are least likely to sell their properties.

However, 69% of landlords with more than 20 properties shared the same view, as did 59% of those with 11-20 properties.

The main reasons not to sell included the promise of strong rental yields and a potential downturn in house prices. Others said they were waiting to see what happens to mortgage rates in the coming months before making any decisions.

‘Landlords have shown real resilience’

Paul Brett, the firm’s managing director of intermediaries, said: “Against a backdrop of rising mortgage rates, increasing costs and tougher stress tests, landlords have continued to show real resilience.

“This is once again highlighted by our data and shows that despite the challenges, the majority of landlords are still not looking to trim their portfolios.”

He added: “While some may be adopting a ‘suck it and see’ approach in the current climate, there’s plenty of reasons to be positive as the year progresses.”

Landlords who want to sell properties

The main factor for landlords wanting to sell properties, the survey reveals, is rising interest rates (45%), while 22% said the tenant’s rent doesn’t cover their mortgage costs.

Of those landlords who are planning to sell properties, 20% said they intend to sell up to a quarter of their portfolio.

Just 2% plan to sell all their properties, while 8% intend to cut between 25% and 50% of their housing stock.


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Comments

Chris Bradley

17:25 PM, 8th February 2023, About A year ago

I am a small landlord, I have sold one property and had planned to sell the remaining one this year, buty tenant can't find anywhere else as there are no rental properties available, so since I won't sell before April, and the CGT changes, I will hold onto it untill my tenants find somewhere else.

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