One in five (20 per cent of) landlords plans to reducing their buy to let holdings according to a new survey.
The Property Academy Landlord Survey 2023 result contrasts with that of a year ago, when just 13 per cent of landlords were going to reduce BTL holdings.
The burden of legislation is the most common reason for selling up – cited by 22 per cent, with a further 17 per cent saying buy to let was now ‘too much hassle’ - the latter typically indicating a problem with the tenant. For another one in five, retirement or equity release prompted the sale.
The survey found that those landlords selecting which property to sell were driven primarily by lease and dates, especially if they wanted to sell with vacant possession.
At the other end of the buy to let investor scale, two thirds of landlords had no intention of changing their investment portfolio in the next one to two years, and the bigger the portfolio, the more likely the landlord is actually likely to be planning expansion – supporting the view that the sector is shifting away from small amateur landlords to a more professionalised sector.
Equally, 22 per cent of those planning to invest more were planning for their pension. Only five per cent cited attractive yields, even though rising rents have driven yields upwards in many parts of the country.
Elsewhere in the survey, it appeared buy to let landlords had relatively low awareness of Build To Rent. Only 31 per cent knew of BTR, slightly up on the 2022 survey result of 26 per cent.
So far, BTR represents only two per cent of all UK private rental stock, but the survey claims that some experts believe it could eventually make up 40 per cent of private rental homes, and it suggests that if small landlords continue to sell, the government will be under increasing pressure to support BTR growth.
Perhaps most surprising of all, almost 40 per cent of investors responding to the survey claimed to know nothing of the Renters Reform Bill. For those aware of it, there is significant concern about the potential negative impact.
By far the greatest concern was the loss of Section 21 rights to reclaim possession of the property. Well down the list of priorities was the prospect of a legally enforceable ‘Decent Homes Standard’ applied to the private rental sector as well as social housing.
More details of the survey - results of which are being sold by the Property Academy - can be found here.
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now lets see the government dream up of even more laws to persuade landlords to sell up, and let the councils buy up the homes to house all these new homeless people , and dont forget the laws will also apply to them good luck.
I don’t believe it 😱😱😂😂, I have also heard the Pope is Catholic ⛪️……… I am one of those reducing my stock….. to Zero 💰🕺🏻
Is that net zero Simon? 😂😂
The burden of legislation,
Licensing, increased Taxes, Fines, Penalties. Criminalisation, Confiscation Orders and Private ownership has become State Controlled, so not PRS anyone Thanks Mr Gove and Mr Hunt. It’s not news that Landlords are selling up or reducing their portfolio or in a sulk or that Government Policy has increased Homelessness no end, no surprise then the affects of their Policies has come Home to Roost or that the Rough Sleepers in London has tripled in just a few years and it’s not just men is it I have seen for myself this is madness.
No, it is not news that landlords are selling up. Shelter know it, Generation Rant know it, even the Government knows it. They just cannot bare to admit that their anti-landlord policies are the cause. 😡
Don’t forget The Scottish Government and The Green. Housing Prevention Officers!
Done more damage to the PRS up here than a demolition contractor could do.
Also as I understand it they are making HMO landlords responsible for C/tax where as before not all landlords were responsible for this tax but I can’t verify this although some change happening. That looks like landlord takes £150. pm hit in general or increase the Rent by £150. pm.
Do you have a source or any evidence of this at all?
I was under the impression if the HMO was let on individual tenancy agreements the landlord included it in the rent and paid the Council Tax.
If the HMO was let on a joint tenancy agreement it was optional who paid as the group of tenants was renting the whole house so the liability or exemption would be collectively theirs. The tenancy agreement would state if It was included in the rent or not. Presumably it would mainly be students on joint tenancy agreements so those houses would be exempt anyway.
Ben - try googling "Council Tax information letter 3/2023: Changes to regulations for Houses in Multiple Occupation (HMOs)"
I believe that the new rules apply to HMOs which currently have multiple council tax bands attached to them, with the tenants paying their own individual council tax.
There is another group of landlords. Those holding on to their properties when they become vacant, but too worried to let them because Labour has said that they will abolish Section 21 on their first day in office.
The question is what is the government and the lobby groups going to do, to change the current trend of LL's selling up. Its absolutely clear that the burden of legislation, increased taxes, increased licencing schemes, increased costs on LL's and increased mortgage costs are all driving LL's out of the market, strangling supply and pushing up prices.
The current trend will only continue or accelerate unless something changes. A wise man once said that the definition of stupidity is to carry on doing the same thing and expecting a different result.
If the Government and the Lobby groups took a collaborative, rather than conflictive approach to LL's who are suppliers of rental properties, understood the issues faced by LL's and helped to change the burden of rules, regulations and taxation. Positive changes would go a long way to encouraging LL's to remain in the market or maybe even invest in further rental property increasing supply and reducing prices to the very tenants that say they want to support.
If Lobby Groups want to support tenants, they first need to support LL's, as the burden on one becomes the burden of the other.
Problem is, these lobby groups are ‘politicised’ to seek only the elimination of the PRS. Their central belief is that no one has a right to own property beyond perhaps, the one they live in. In addition ‘profit’ is a dirty word and capitalism the arch-enemy. The ‘state provision’ of everything is their enduring ambition. In other words, they are all looney lefties and a social and democratic threat to U.K. plc. Conclusion, none are honestly pro tenant, all are anti landlord.
The wise man you quoted was Einstein 👨🏫, and in terms of what they may do, Labour that is…. Emergency evictions ban anyone ? 🆘🆘
I don't know how else they could abolish Section 21 straightaway other than an emergency eviction ban, while they pass secondary legislation (assuming the Renters Reform legislation has finished its journey through Parliament by the time of the next election).
However, they would be moving away from being democratic if they do that - and there may be few landlords ultimately who remain, finding a way to exit as soon as possible.
Labour would do much better to talk to Landlords - and not the NRLA/social landlords- and try to see what letting models are acceptable to them - possibly longer fixed term tenancies?
I sold all my portfolio, and invested in Florida, where they have sensible property laws.
The Conservatives are incompetent, and Labour are incompetent and dangerous.
We will end up with nothing, but we will be happy.
Ben, there’s a blog on the iHowz website but I wasn’t logged in to get the full sp.
More reports are coming out to highlight landlord exodus, but they dilute the issue by saying bigger landlords are looking to buy more - without showing the disparity in numbers. A 10% loss of small landlords is a huge amount, a 10% increase in big landlords buying is a much smaller number, because there are far fewer of those. Stop glossing over the disaster to come!
Correct Nic, 10% of 2.4m is a huge amount considering average of all properties seem to be 4 people per property.
Displacing 1m people on top of the 750k that turned up via whatever mode of transport and you have a huge problem.
Nic Kaz, I've always wondered where the line was drawn between a small and large landlord, there doesn't ever seem to be any mention of a medium size.
We have about 15 houses and currently want to sell 2 of them. Tenants have been informed that we wish to sell and have asked them to look for alternative accommodation.
We don't want to have to evict them, but after many months no one seems to want to move.
When the RRB and if/when EPC C comes in I will have to accelerate my wish for them to find another house before S21 is abolished as I will be selling the houses.
The day the government officially announce that S21 will be abolished, I have 2 tenants that will be issues either a S21 or S8 as I wish to sell.
I've already resorted to putting money in high interest bank accounts instead of buying any more houses. Better interest and no headache or bills.
If it wasn't for capital gains the rest would be up for sale and my life would be so much easier.
I don't think that the government will ever wake up and confess that they have destroyed the PRS, and under Labor, it will be worse.
Maybe 1 day, after its way too late someone in the government, NRLA, Shelter, Acorn and the rest of them will admit that they made a mistake.... and probably not, they will all just blame it on landlords.
In the mean time, any of my houses that come up for rent are making huge gains on rent increases.
Still not market rent, maybe I should put them up another 100 pounds a month to get them closer to other rents.
Government will blame me and say I'm making people homeless and call me greedy. Energy prices, interest rates and inflation may rise and they turn a blind eye but blame it all on landlords.
Lets wait and see what's going to happen in the next few months.
Tenant just vacated and house up for sale
Same here!
One fine day our then government will realise that what's been done to the PRS these last few years is akin to using a sledge hammer to crack a nut, hence leaving the rental sector broken beyond repair and causing homeless figures to skyrocket.
Dave, your so right, but unfortunately they will never acknowledge it until it's too late and then just blame it all on Labor.
Homeless figures are already sky rocketing.
Get out whilst you can...that's my advice. Especially if you're in Scotland!
Jo. Not optional my agreement’s are joint & several for whole property I don’t let rooms. Its printed in the Tenancy Agreements its their duty, why would I volunteer to pay someone else’s tax. Suppose they want landlords to always pay the Council Tax it’s not a problem then I will rent by the room only like others as all my Properties are Licensed, unfortunately for the Tenants Rooms in London costs up to £300.00 pm more individually that’s not an exaggeration. Have they got any more bright ideas about something they know nothing about.
I don't think that the new rules apply to self-contained flats/HMOs which have their own council tax band. They will only apply to HMOs which currently have multiple council tax bands.
Michael - exactly what I said. You're using a tenancy agreement that spells out the tenants are renting the whole house and are liable for paying the CT themselves.
You could choose to include all bills in the rent if you wanted to. Tenants tend to be willing to pay quite a bit more to avoid the hassle of chasing housemates for their share of bills.
The problem is good landlords housing Tenants for very affordable Rents for years are now forced into a situation by Mr Gove & Co that they don’t want to be in. Trying to get out is another matter Tenants can’t
find a similar property as cheap as the one they had Thanks Mr Michael, you have upset millions of Tenants causing them to move & making their accommodation unaffordable preventing them from saving any money in the future and prolonging the day if ever now they can afford buying their own place, well done and you are still going ahead with your RENTERS REFORM BILL, are you qualified stupid or what ?.
It is a terrible situation - and I really think that Labour should say something now to rectify it. They should not have said that they would abolish Section 21 as soon as they take power - there were obviously going to be consequences for many existing tenants.
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