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A quarter of private landlords are looking to sell at least one property over the next year according to new research published today.
Of almost 2,500 landlords who responded to a survey by the Residential Landlords Association, just over 25 per cent said that they were planning to sell at least one property over the next year, the highest proportion since the RLA started asking this question regularly in 2016.The same survey shows that 23 per cent of landlords report an increase in the demand for rental property over the previous three months, with 57 per cent reporting it to be stable.Over a third of landlords reported low levels of confidence in the private rented sector over the next 12 months.
The results come following the publication of Government data earlier this year which found that that 10 per cent of private landlords representing 18 per cent of tenancies plan to decrease the number of properties they rent out, whilst five per cent of landlords, representing 5 per cent of tenancies plan to sell all of their properties.The Royal Institution of Chartered Surveyors has warned that the imbalance between supply and demand in the rental market is expected to see rent increases averaging three per cent per annum over the next five years.Amidst the rental home supply crisis that tenants now face, the RLA argues that it is vital that landlords retain confidence to provide the homes to rent that are desperately needed.This means ensuring that new regulations governing how landlords can regain possession of their properties in legitimate circumstances are fair and effective both for landlords and the tenants.David Smith, Policy Director for the Residential Landlords Association:
“All the talk of longer tenancies will mean nothing if the homes to rent on not there in the first place.“The Government’s tax increases on the sector are already making it difficult for tenants to find a place to live, with many landlords not renewing tenancies. If rushed and not thought through, planned changes to the way landlords can repossess properties risk making the situation even worse.“Action is needed to stimulate supply with pro-growth taxation and a process for repossessing homes that is fair to all.” If you have not already done so, please take the RLA Survey soliciting your views on Section 21 - Landlords urged to shape future of PRSPlease share here if you are selling, thinking of selling, or have sold investment properties recently and the reason why you did.SEE ALSO - S24 discourages landlord expansion - £50K capUP NEXT - BTL property purchases in sharp declineDON'T MISS - 1 in 4 landlords to exit due to Section 24NOW WATCH:
Vanessa Warwick Landlord and Co-Founder of PropertyTribes.com **If you have got value from Property Tribes, find out how you can support it in remaining a free to use community resource**
As of yesterday in our small market town of Attleborough out of 14, 2 bed properties under £200k listed for sale, 6 of them were previously let properties, I found a further 3 when I searched under the already sold option. Nine let properties in a small market town no longer available for tenants in the last few weeks. I have never seen this before.
I am sending an email detailing some of the impacts I am seeing locally to George Freeman our local MP (as I assume he will not have time to do this sort of research) but do not believe it will have any effect whatsoever.
I am also hearing that friends running holiday lets are suffering as many people are jumping into that market as an alternative. This appears to have resulted in a surfeit of properties and existing holiday let owners are finding they have too many voids to make it a viable proposition. Finally am also hearing from colleagues in the market who have one or two properties that the removal of S21 leaves them feeling too exposed/vulnerable to stay in the market.
I wonder if instead of draconian legislative changes the Government could create a new option whereby Landlords who wish to provide long fixed tenancies to families could be rewarded with a tax break and therefore it becomes a choice to commit to that. Generally my tenants tend to stay between 2 and 4 years and move on out of choice.
Thank you so much for sharing your local insights Alex. Interesting to hear about the knock-on effect to holiday lets as well. What a fuster-cluck!
That make sense and if BTL becomes holiday let it will have an even bigger impact on the house stock.
" I am sending an email detailing some of the impacts I am seeing locally to George Freeman our local MP (as I assume he will not have time to do this sort of research) but do not believe it will have any effect whatsoever. "And therein lies the problem. A situation that you've spotted, with problems that can be caused, but as you so rightly put, it won't have any effect because the person you'll be corresponding with probably has no interest, and ultimately can't do anything about it anyway.
This is the sad situation we as LL's have got to now. The NLA and RLA whilst they talk to Govt., they do not bite unlike Generation Rent and Shelter. We are a problem to everyone that likes to shout about such things on social media looking for quick-fix 'haven't I done well' type solutions, but always creating at least 2 other problems in the meantime. And we will still be the problem when our numbers are a lot lower! A classic no-win situation.
I corresponded with a Member of the Lords (Conservative) and she said Govt would not listen to Landlords
The reason is Tenants dont vote Conservative But Home owners do
This is the main reason for the assaults on our sector
The Tories want home ownership
If Labour comes to power it will be an assault again on taxation and regulation so we cant win this battle
Learn Change and Adapt ?????
All comments are for casual information purposes only. If you wish to rely on any advice I have given please ensure you obtain independent specialist advice from a third party. No liability is accepted for comments made.
And now this ... Scrapping Sec. 21 more deadly than Section 24
"RLA warns of mass sell-off by landlords" They always seems to do.
It's interesting that in the last 12 months, the RLA survey shows 70% maintained the portfolio size.
With 15% reducing portfolio and 14% expanding portfolios. This shows a 1% reduction?
The Full Report makes an interesting read.
_________________________________________________________________________The above post is not financial advice, its often me rambling - passing time on a coffee break.If you are looking for the Best BTL Mortgage? Call the Specialist Team at Bespoke Finance._________________________________________________________________________
Started reading ,and will have some good stuff - but I clearly read too much Private Eye. At least one sentence at the very start has been invaded by Murray Walker !
"There is evidence to suggest those landlords who are pessimistic in their outlook of the Private Rented Sector are more pessimistic than those who are taking an optimistic point-of-view."
Even in five years time, he will still be four years younger than Damon Hill.
S24 is biting more by the passing years Adam
Landlords are now wakeing up and are starting to see the pain of more taxation and the uphill struggle the sector faces
I would say we need to give this topic more time
I think the figs may be quite different in 2021
Any mass sell off now due to recent brutal tax regimes is compounded by another factor
The generation of LL`s that came on board in 1996 which saw the advent of the modern BTL mortgage have reached perhaps a natural end to their investing careers
23 years later the 25 year mortgage term is in sight and the plan was always to sell at this point anyway irrespective of the extra burdens now imposed
The energy levels at 65 are not what they are at 40
Jonathan Clarke. http://www.buytoletmk.com