More landlords resorting to quick buy operators

A quick buy property company says there’s been a surge in the number of landlords quitting the rental sector.

“We’ve seen a particular spike in enquiries from landlords looking to sell underperforming properties or even entire portfolios as they start to feel the pressure of increased legislation, rising interest rates and management costs” explains Jason Harris-Cohen, managing director of the Open Property Group.

OPG says almost a third of the purchases made in the first three months of the year were to help vendors - some of them landlords - whose sale had fallen through.

Harris-Cohen says: “Fall-throughs have always been one of the biggest risks to vendors during the sale process, preventing them from progressing with their onward purchase or plans, which can be extremely stressful.

“It can also have a significant impact on the completion timeframe and in some cases, cause them to lose out on their dream home.

“However, in the first quarter of 2023, we were approached to help vendors fix broken chains so they could continue on the same path. With no estate agent or legal fees to pay on the sale, clients were pleasantly surprised at the cost-effectiveness of the offer combined with the hassle-free process.”

Two-fifths of the purchases were from sellers who were relocating, indicating that the motivation behind cash sales is not always related to problem properties.

Harris-Cohen adds: “Vendors who have lived in their existing properties for some years will benefit from the capital gain achieved over time and, in some cases, will be mortgage free.

“We’ve seen a lot of interest from people who are moving overseas, to an area where property prices are lower or to downsize. Where getting the top asking price isn’t a priority, selling to a cash buyer simplifies the process for them, enabling them to relocate faster.”

Of the remaining property purchases made by OPG between January and March 2023, 12 per cent had short leases, and nine per cent were buy to let properties being offloaded by landlords.

The properties, which comprised mainly houses, were located in various parts of the country including London, Milton Keynes, Exeter, Manchester and Newark. The average purchase price was £116,645 and the average completion time was 33 days.

Compared to the last three months of 2022, OPG saw a 16 per cent increase in cash offer requests.

OPG’s onward strategy includes reselling properties via the traditional estate agency route, at auction or via its investor network.

The firm also retains many buy to let properties within their own managed portfolio, which now stands at 145 properties across the country.

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Andy Marshall
02 June 2023 07:28 AM

Very good point Simon, on my Norwich house they offered £170,000, one similar on rightmove was on at £215,000. It may have sold now also as has been removed. Last summer these houses were advertised offers over £240,000. This demonstrates how things have changed.
For me the question is how long will it last and in which direction will it go?