Third of landlords looking to shrink portfolios

by Property 118

0:01 AM, 20th December 2019
About 8 months ago

Third of landlords looking to shrink portfolios

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Third of landlords looking to shrink portfolios

Over a third of private landlords are planning to cut the number of homes they rent out or exit the market altogether over the next year according to a new survey of over 2,000 landlords.

The almost 34% of landlords indicating that they intend to reduce their investment in the market is a 30% increase over the previous twelve months according to the research conducted by the Residential Landlords Association. Just 12% of landlords are looking to expand the number of homes they rent out, down from 14% a year ago.

The fall in supply comes despite the Royal Institution for Chartered Surveyors warning that the demand for private rented homes is outstripping supply. Rightmove has spoken of there being “strong demand” from tenants. 45% of landlords told the RLA that the Stamp Duty Levy on additional properties had been a deterrent to further investment in property.

Professor David Miles, a former member of the Bank of England’s Monetary Policy Committee, has previously warned that aspiring first-time buyers are hardly helped by squeezing the supply of rental property and driving rents up.”

With Ministers pledging to introduce a Budget early next year, the RLA is calling on the Government to scrap the Stamp Duty Levy where landlords provide homes adding to the net supply of housing. This should include developing new build properties, bringing empty homes back into use and converting larger properties into smaller, more affordable units of accommodation.

David Smith, Policy Director for the Residential Landlords Association, said:

“This is yet more clear evidence of the sell-off of private rented housing largely due to the government’s extra tax on new rental homes. It is ridiculous that when the country needs all the extra housing it can get, it penalises good landlords who invest in new homes. With a new government and a Budget due, we need a shift in policy to one that supports investment because otherwise there will be a growing supply crisis in the private rented sector as demand continues to rise.”



Comments

Ann Shaw

11:27 AM, 20th December 2019
About 8 months ago

They can add me to their statistics too, as I'll be selling my properties, as soon as the New Year! If you poke a bear too much it will become retaliatory....At the end of the day, we are a business, not a .org

john mcghee

12:23 PM, 20th December 2019
About 8 months ago

In support of Ann Shaw, l am also selling my whole portfolio of 20 properties, l have already sold 6 as l cant afford to keep subsidising the missed rents. In the next month l will be using bailiffs to get 2 of my tenants to leave. The properties l am getting back both require full redecoration, gardens completely overgrown, and one of them has filled the garage from back to front.and floor to roof with rubbish. The garge alone will cost me £1000 to empty.
Now l cant even use section 21 and they wonder why landlords are selling up.
The local council told both parties to wait for bailiffs.
I have decided thats it, best of luck to all of you landlords left, l hope you all do welll in the future and l really mean that.
Also best of luck Ann , l bet we aren't the only ones taking this road.

Coastal

13:08 PM, 20th December 2019
About 8 months ago

Unless the government wake up to real world events caused by their out of touch misguided decision making within the PRS, I shall also be looking to sell up, meaning some 50 local families will lose their homes, half of which are on benefits and or disabled. The relentless targeting of private landlords as being the main reason for rising property prices, homelessness and higher rents really must stop under this new government.

The reality with the UK's worsening housing crisis comes back to prices, which have been fueled by successive government policy of selling off social housing, which begun in the early seventies, Help to Buy and a dysfunctional planning system which makes gaining consent to new build a massive challenge, thus fueling land prices and developers profits if / when they do succeed and of course ensuring little or no green belt can be built on. This is despite only approx 1.1% of the UK already having buildings. Add to this the promised gov shortfall over the last 20 years of 2.3 million new homes and the scrapping of tenant fees which have as predicted have pushed up rents for the so called greedy landlords, all adds up to more failed polices, which are somehow our fault.

The Queens speech covering new protections for tenants, including the abolition of S21, again covers little or nothing to provide new hope for the private landlord. Whats urgently needed is a 'working with not against landlords' policy, the scrapping of Mr Osbourne's draconian changes of additional property stamp duty, the S24 tax on turnover system. The creating and allowance of three new build sustainable houses to every square mile as long as they have existing road access.

The reality I suspect is nothing significant will really change, with the same old blinded tinkering and a worsening UK housing position over the next five years.

Samantha Cansfield

14:14 PM, 20th December 2019
About 8 months ago

You can also add me to the list. One sold, two more sales currently going through, one interestingly to the council. I will keep just a few properties. This will uproot many families and many, many individuals, it was never in my plan to sell however the introduction of S24 and the continual onslaught has pushed me too far. I have been in this business 22 years.

DC

18:02 PM, 20th December 2019
About 8 months ago

And add me to the list! My intention was to build my portfolio for many years to come but after purchasing what was to be my last property in 2014 Osborne came along with his pathetic idea of taxing many BTL landlords into bankruptcy.
Just last week I sold properties 5 and 6 of my portfolio and intend to continue doing so until I'm out of this stupid game.
How many more thousands of landlords are doing the same I wonder?

Coastal

11:38 AM, 21st December 2019
About 8 months ago

Indeed DC, trust in government has completely evaporated in terms of business investment. Their mantra of "Making hard work pay" applies until the goal posts are moved!
If they genuinely wanted to vastly reduce BTL businesses purchasing properties for rent, then surely the S24 changes could and should have applied from Osbourne's budget date and not have been back dated on all pre existing mortgages that one had committed on?
Then for good measure, they make it near on impossible to move everything into a Ltd Co without vast complications and cost!

marcio silveira

20:36 PM, 21st December 2019
About 8 months ago

I have 10 properties in se17 London 3 is for sale right now 3 on the way to my to my children and the others may be holding for while . Apart from rules, regulations and taxes and now brexit, the only thing I wanted it’s was pay no more taxes to this country any more, I sincerely thought this was a serious country I am fed up with that 3 world mentality from where I came from , if this country didn’t care about it’s on uk union to whom they will care about? Nobody,sorry I am out

AA

16:18 PM, 22nd December 2019
About 8 months ago

The sell off is because the perceived abstract effect of s24 is no longer abstract, it is now real. We knew it was coming but as tax demands got bigger and more difficult to plug, holding out was just a matter of time ...before you couldn't any longer.
Thank your lucky stars you don't live in Scotland. We have the perfect storm. S24, 4% stamp duty additional property charge, 5 tax bands below the 40% tax band which kicks in at £43k (not £50k). And the Scottish PRT. Tenants can use your property as subsidised hotels. Exactly what are you guys complaining about ?


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