A third of landlords have suggested they are considering retiring or quitting the sector because of attacks and obstacles in the buy to let sector.
And a quarter of those quitting indicated they were driven out by too much legislation and compliance. A further 24 per cent claimed that rising mortgage costs and/or changes in tax was also a motivation.
Of the landlords surveyed by the Open Property Group, two fifths have just one rental property, while over a third have three or more properties and almost a fifth have over five.
Over a quarter were enquiring about selling more than one rental property.
The most common type of property owned was terraced houses followed by flats and semi-detached houses. When asked what condition the property(ies) was in, just eight per cent stated poor, and one in five class their rental as in excellent condition.
“Landlord enquiries have certainly ramped up in the first three quarters of 2023 and these survey findings concur with the anecdotal conversations we are having with landlords” says Jason Harris-Cohen, the managing director of Open Property Group.
“Most of them are simply fed up of the never-ending red tape which is only worsened by the economic climate at the moment. As a result, retirement plans are being brought forward.
“This is not good news for tenants, or the private rented sector as a whole, but the fact that most landlords would prefer to sell with tenants in situ does offer some reassurance. It also removes the complex and time-consuming process of serving a Section 21.”
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Only one third? I fear many landlords are sleep walking into what is yet to come in the form of the RRB and worst still if Labour get in. I fear many people with good tenants are waiting and seeing. But a proportion of those good tenants will be free to turn bad. Even more likely when what was perhaps a good relationship will sour when you want to sell.
There is probably a percentage of landlords who believe that it will be over a year before the abolition of Section 21 will apply to existing tenants. Therefore they think that they do have time to wait and see about the situation.
Angela Rayner's comments about abolishing Section 21 straight away have raised the possibility that a very different timetable will operate.
I did one S21 on the back of the White Paper last year. Couldn't take the chance of an eviction ban and them bringing in all this nonsense!
It is natural and predictable that landlords will take action to protect their own interests. Obviously it is much better though not to leave properties empty, if that is at all possible.
The Open Property Group very good but we can see through all this, you were doing fine with the Article but you had to get the punch line-in and leave the cat out of the bag.
Its has been proven over and over again that Landlords wants to sell Vacant Possession and buyers want to buy Vacant.
Good try OPG the cash buyer that would love to buy your property at a knock down price and what could reduce the value of your property more than Tenants in-situ.
One day we might get some group on that genuinely supports landlords position.
Totally agree, I will be selling vacant ! It improves my pool of buyers.
Michael very well said. You are so right yet again. If i'm selling my property will be vacant and will have had a full make over in order to get the best possible price. Last house I did this with gave me almost £25,000 over the estate agents earlier estimate. It had cost me just under £5k to do including the 2 months extra time for mortgage and other costs!
More and more articles are starting to come out these days and Government and Councils seem to be realising the massive issues regarding PRS LLs.
We’ve had enough of the constant interference and tax changes that for some reason only apply to the PRS.
WERE NOT IDIOTS, WE ARE RUNNING BUSINESSES AND SHOULD BE ENTITLED TO THE SAME Ts&Cs AS EVERY OTHER BUSINESS.
Because of the big Sell Off by PRS LLs and the lack of properties on the rental market families are now been put in B+Bs, cheap one bedroom hotels and now families are sleeping outside my local council office in TENTS.
PRS LLs looked after the housing situation very well but enough is enough and Government and Councils can have it back.
Labour are saying they will build in excess of 1.5 million houses
We do not have the skilled trades to build anywhere near that amount. They are talking out of their backsides.
Who is going to run and maintain any properties they build?
They will need to set up all new departments within every council office.
These dumb idiots certainly have not thought this one out.
Enjoy your new roles as Landlords.
One last thing, If you evict through non payments or whatever method you will then have to rehouse these people all over again.
There is a well known landlord (who might even read this and want to comment) that told me a great story recently of a situation that arose in his town.
There was a family of social tenants who were continuously anti-social (sorry about the double use of the word). The problem was bad enough that evidence was collected and S8 served. Eventually the bailiffs turned up, evicted and the family and changed the locks. The family presented themselves to the council offices where they were put into temporary accommodation overnight. The following day the case worker looked to see where they could be re-homed and checked what properties the council had that were vacant. They were then promptly given the new keys to their old home and back in they went.
Apologies for the mix up on wording. I should have read it over before posting.
John - that's horrendous!
That must have cost the tax payers a lot for nothing.
Excellent summary of the likely situation. Nowadays politicians don't need to think like this though as they simply get the sack and it becomes the next idiots problem.
Making the decision to sell & actually selling can be years apart. I have made the decision to sell, but I am not currently evicting good long term tenants. As they leave I will be selling up. LLs leaving the PRS is like a slow train coming - it will take a while to get a a head of steam but then be unstoppable. This is only the beginning.
Ditto
So true 🫣
I am doing the same as you. I will not be reletting once my current good tenants leave, which is likely to be in 2025.
Tricia, I think you've perfectly described the impact of S24! Lots of landlords looked at the numbers and quietly started rationalising their portfolios from 2016/17 as S24 started to bite. It's full impact was 2021 so the 100% pain was felt by Jan 22 with the final tax returns. It's no coincidence that the crisis in the PRS followed a similar timescale. The rapid increases in interest rates have compounded the pain considerably, hence the now daily headlines in all the papers about the state of the market.
Didn't take a genius to work that one out, but the Treasury and our politicians are still in denial.
I am raising my rents next year to around the market value.
I am honestly hoping that that will have the effect of the tenants actually looking elsewhere and I can then put them up for sale.
Some of my properties are well below 30% of similar properties advertised in my area and with the prospect of a Labour Government next year in Westminster, then rent rises may be kept to a small percentage, if they have their way.
Here in Wales, we already have the reform legislation and we are limited to putting the rents up only once in a year.
Also, I don't think that it will be long before the WAG insist on small percentage rises every year.
Well written Tricia, I am doing the same as you, though I am getting more and more tempted to just call it a day. I could easily refurb 2 properties a year, therefore be out of this game in 4 years. It is quite tempting!
The media exposure of the PRS crisis is everywhere and everyday see today's guardian top read articles " landlords-sell-up-in-great-britain-as-buy-to-let-market-sours"
However NLRA seem to be deliberately sticking their head in the ground:
I heard a local NLRA representative on BBC Southwest last week painting a more happy picture that all is well in PRS world. What complete wasted opportunity to explain the issues to the masess once again!
I read that article and it was very poorly worded and did not get across the real pain points of landlords. Glossed over with the magic words of Red Tape and Compliance.
Like the citizens and politicians of Pompeii 🌋 that didn’t end well also. 🆘
I haven't given notice to anyone (yet) but I am quite prepared to do so. Any property that comes vacant is either sold or rented to people who don't want it long term. This leaves the ones who wanted it long term very upset. I tell them they will be lucky to find a landlord who can guarantee long term, due to all the attacks on landlords. Its all a bit sad.
It is sad and ridiculous. If there were no government interference then many landlords would be happy to let to good, long term tenants.
Well said, Ellie. Have previously had tenants in situ for six years plus with no rent increases. Now my tenants are one to two years maximum and the rent goes up when they leave. Mainly thanks to Shelter, Generation Rent and their useful idiot friends in government.
I think that is how many landlords have been altering the way that they operate their businesses. Probably landlords' behaviour will change again as the general election approaches.
@ Annoyed Landlord me also I used to like the long term tenants. now I quite like it when they go the void gives me the chance to catty out improvements and a very big increase in rent when I re let
I agree with Tricia, selling is a slow process. I have sold 2 of properties. But there has to be buyers as well. Due to high rates of interest, the market has slowed down. The ones who wish to buy are cash investors, who want to pay less than the market rates. However, labour makes it harder by banning s21, then I shall be forced to give notice to tenants and put them on the market. A year's rent is needed for me at the moment. Other properties are mainly student lets, they stay 1 to 3 years. We will sell our own house in about 3 to 4 years and move into one of the other buy to let houses, which is a smaller house and also be able to use personally a flat in central London. So at least 4 properties will be out of rental market. The selling of properties is a very slow process. Our house needs to be sold as soon as soon as we have some money to do it up. Last time the total refurbishment was done was in 2007 and 2008 with increased mortgage. There is always a great demand for properties where we live, so bad market does not have much effect. I say 3 to 4 years as most my properties are on fixed rate mortgages. 2 of my properties will be mortgage free next year so can sell them. They will be sold empty.
Peter, it will take some time for The penny to drop, when another 30% buy to let's have gone in about 3vto 5 years and the politicians will be forced to do U-turn on taxes and treat BTL as a business with same Ts&Cs as other businesses. Some of our sales within 5 years may be bought by other property investors, so it will be a slow process and politicians take a long time to notice, as they have their own agenda. Angela Rayner is a brainless idiot, who does not understand the manpower, funding and time needed for her foolish ideas to come to fruition.
Vibha - you've described Ireland to a tee. They were ahead of the UK in their war on landlords. This created the inevitable crisis and they've spent the last couple of years completely reversing all their damaging policies in order to try to tempt landlords back. Too late though - who's going to come back into a market with high property prices and high interest rates? Very difficult to make the numbers stack up so all those retired landlords are staying retired! Perfect storm ..... and the same perfect storm awaits the UK.
I’m one of the classic PRS profiles - an ‘amateur landlord’ who had two BTL properties bought with hard earned savings and mortgages - visualised as pension investments to ensure I wouldn’t be any kind of burden on the state in my old age. I’m not yet pension age but I’ve already sold one property and plan to sell the other at the contract end. Being demonised is deeply hurtful as I’ve always been a good landlord, but my main reason is that pressure groups and politicians are demanding my BTL house is theirs to play with - dictating who can rent it, for how long, at what EPC and at a capped rent. No way. I’m out!
I believe Rachel Maclaen has lost her job as Housing minister.
Housing Ministers are, it appears, disposable.
She has posted on Twitter:
"I’ve been asked to step down from my role as Housing Minister. Disappointed and was looking forward to introducing the Renters Reform Bill to Committee tomorrow and later the Leasehold and Freehold Bill. It has been a privilege to hold the position and I wish my successor well."
If Cameron can come back then it's entirely possible that Osborne can too and that is deeply concerning.
@ John McKay - Gideon Osborne as Chancellor?
Rachel "all is hunky dory in the PRS" Maclean. That one? Hopefully Lee Rowley will at least acknowledge the issues in the sector. RM was never going going to do anything constructive - all her statements indicated all was well, and why all the fuss?
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