Tag Archives: Landlords selling up

What have duck eggs got to do with selling our property portfolios? Landlord Sales Agency, Latest Articles

It’s the headline we thought we’d never see: Tesco is joining Asda and Lidl in rationing duck and chicken eggs oversupply issues. It might seem like news out of your grandparent’s era, but it’s just another reflection of the effect rising costs and the economy is having on both our business and domestic lives.

It’s no surprise, therefore, that Landlords are looking to property sale companies to get their portfolios sold before Christmas and sail through what is looking like it could be an ever-uncertain economy.

For many of us, this means selling the whole portfolio in bulk, or at least the majority of the portfolio, and shifting our financial “dead weight” whilst getting the highest possible amount in our banks, perhaps holding onto only the last, most lucrative properties. But who do we turn to when we have so many properties to sell before the end of the year and with so many tenants?

For Shauna, a landlord of 30 years, she knew that selling her buy-to-lets in bulk was crucial.

The property portfolio she’d built over the years had become a financial ball and chain and it was obvious she needed to get out while she still could. Like many of us, she quickly realised that traditional Estate Agents and many private portfolio selling services just weren’t working. They either took years to sell or required her portfolio to be split up into smaller chunks for sale.

All that changed when she reached out to portfolio exit specialists the Landlord Sales Agency.

There’s never been a better time: our property portfolios which were once reliable machines creating a profitable monthly income have ground to a halt. Interest rates and taxes have risen in an almost exponential way, inflation and the cost of living has risen higher than ever before, and for landlords on tracker mortgages especially, concerns have mounted over deteriorating rental profits, with worries of future stagnation or worse deflating sales prices.

Then there’s the effects of the last year: Landlords fearing paying more tax than they’re making in profits. Added onto that has been the volatile mix of rising regulatory costs: EICR (electrical) certificates required for us to continue to rent legally, expensive refurbs and even more regulations and costs with EPC ratings (which for some of us has meant considering spending up to £10,000 per property).

It’s clear we need to downsize our portfolios to recoup costs and recover, perhaps even thrive despite the issues, but like Shauna many of us don’t want to deal with the painful stress of managing the sale of the portfolio in painstaking ‘three properties at a time’ pieces, chunk by chunk.

Selling the whole thing in one go might sound like a strategy reserved only for auctions who take a hefty percentage, but Landlord Sales Agency are specialists for a reason:

  • We have a powerful database of over 30,000 private buyers and portfolio buying companies who want to buy whole portfolios straight away before the year ends, and who are alerted every time we have a portfolio to sell
  • Because we focus on a quality fast sale, rather than a cheap fast sale, we ensure that our buy-to-let portfolios are sold not just fast, in less than 28 days, for a financially savvy 85% of the value (in some cases even higher) – which makes sense when we handle every single part of the sale for you, including liaising with all tenants, ensuring all certificates and licenses are in place, and allowing you to simply make the call to us then sit back and relax knowing we’re on it to get the whole portfolio sold before Christmas
  • There’s no one like us out there, and we’ve built up an unbeatable record for helping landlords which is why we’re the number one go-to company for our partners, including Property118.

Most landlords who contact us are like Shauna, and we’ve got the best team in the business to get the sale done in days rather than months or years. In Shauna’s case, she decided to keep 10 properties and give us 23. All of them were sold in one go within 5 days of listing. We don’t have to upsell our service, the results speak for themselves.

So if like Shauna you’re ready to sell before Christmas and enjoy 2023, get in touch today, and let us at Landlord Sales Agency do what we do best.

Contact Landlord Sales Agency

Why the Renters’ Reform Bill won’t deliver the positive change tenants need Latest Articles, Regulation, Renters Reform Bill

Richard Dawson, rental sector expert at RentGuarantor, says the Renters’ Reform Bill is flawed and explains why he feels greater regulation is the answer.

At face value, the ‘Renters’ Reform Bill’ outlined in the recent government whitepaper, A Fairer Private Rented Sector, looks as though it will bring about a great deal of positive change for the 4.4 million households living in privately rented accommodation across the UK.

Indeed, throughout the paper there is mention of ‘everyone’s right to a decent home’ and the intent to ‘reduce financial insecurities’ for renters, which the proposed reforms aim to achieve. Unfortunately, though, this bill has somewhat missed the point and runs a severe risk of bringing further challenges to an already diminished sector.

We can all agree that everyone should have the right to a decent home, and in the wake of the current cost-of-living crisis, financial insecurity for renters is something that needs to be addressed. However, the current reforms included in the proposal from the Department for Levelling Up, Housing and Communities will not fully achieve this.

On the contrary, the recommendations made in this proposal could lead to more landlords pulling out of the private rental sector (PRS), which currently has nearly half as many properties as it did three years ago. This in turn will further drive demand, lead to bidding wars on rent, and ultimately drive up the cost of rental properties – meaning less affordable housing is available to those who need it.

Something needs to change, and while the ‘Renters’ Reform Bill’ is a step in the right direction, it fails to address some of the fundamental areas in which reform is rapidly becoming a necessity. We need the lettings industry to become fully regulated in order to drive a higher professional standard across the sector.

If this is achieved, more security will be provided to both landlords and tenants, driving growth in the PRS and ultimately providing better and more affordable housing across the UK.

Where the bill is missing the mark

A number of the rental reform proposals outlined in the bill look great on paper, presenting exciting changes to the sector that would give additional rights to the tenant and removing certain powers from the landlord that might be deemed as unfair.

However, while the PRS is undoubtedly in need of attention, care needs to be taken in the changes being made – as these can have far-reaching implications and the potential to cause more issues than benefits for tenants. An example of this can be seen in the aftermath of The Tenant Fee Act, which came into effect in 2019 and was met with a record 55% of landlords raising their rental prices and a large number of landlords exiting the market.

At present, we are already seeing a worryingly low number of rental properties available, with a recent report from Propertymark showing that the average letting’s agency branch had just five properties available to rent in February this year, with an average of 142 applicants on an agent’s books. With the proposals outlined in the government set to impose further restrictions on landlords, such as the abolition of ‘section 21’ no-fault evictions, the private rental sector will likely shrink even further.

Regulate the sector, instead of reforming it

Of course, the ‘Renter’s Reform Bill’ isn’t a complete misfire. The goal of creating a fairer private rental sector is admirable, and the underlying sentiment of overhaul is very much required – but as the rental market grows and the average length of tenancies extends, the current model itself, built to service short-term lets, is no longer fit for purpose.

And though landlords are often vilified in the public eye, the truth is most issues between tenants and landlords arise due to inexperience and a lack of awareness regarding regulation and standards. Currently, anyone that owns a property can rent out that property, regardless of whether they have experience or knowledge of the PRS, so it is no wonder that the sector has become rife with problems and led to a frayed relationship between tenant and landlord.

To address these issues, we need to fix the market from the ground up, starting with legislation to regulate the whole rental sector in England. The Regulation of Property Agents Working Group (RoPA) has long called for Government regulation to ensure everyone working within the industry is licensed, adheres to a strict code of practice, and holds a minimum of a level three qualification.

Not only would this ensure higher standards are met, tackling several goals in the ‘Renter’s Reform Bill’, but it would also mean a higher level of knowledge and education is needed to let property – helping to rebuild trust between landlords and tenants.

The future of the PRS

There are uncertain times facing society at large, and the PRS is no different. With the current cost-of-living crisis and the lack of properties available, people are choosing to stay in their current rental property for longer. This, of course, means less churn of stock, and should landlords choose to remove their properties from the market following the ‘Renter’s Reform Bill’ we will see further demand and higher rent.

If the new government were to replace the introduction of potentially off-putting reforms with wider regulation to support the lettings industry, guided by the industry experts behind RoPA, they can ensure the introduction of policies to protect and benefit the tenant, as well as make the sector more attractive to potential landlords.

This will reinvigorate the lettings industry, bringing more properties to the market and reducing demand, leading to fairer prices and the positive change that tenants and landlords both need.

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