Jo Eccles, director of London-focussed buying agency and property consultancy Eccord, says she is witnessing some landlords willing to quit the sector - even if it means they make a loss.
In her latest market report to clients she writes: “A number of our buy to let landlords who acquired their properties after the peak of the market in 2014 are reluctantly considering the prospect of exiting at a loss and are seeking valuations with a view to selling in the next 12 to 24 months.
“Landlords remain very cost conscious, having faced over the winter months rising repair costs, issues with damp and mould – caused by high utility bills and tenants opening their windows less – and greater demands from tenants who are spending more time at home and have higher expectations for the smooth running of their rental property.
“Landlords are also conscious of looming energy efficiency regulation that will require them to achieve an EPC C rating by 2025 in order to let their property to new tenants. Many will face significant expenditure on upgrades to bring it up to the required standard, and those owning listed properties face an even greater challenge."
She continues: “Net yields remain low and with little prospect of meaningful capital growth over the next three years, landlords are re-evaluating and deciding whether to reduce and consolidate their portfolios when existing tenancy agreements expire.
“Whilst the frenzy and heat has come out of the rental market, tenant demand continues. Of the tenancies we manage which are due to come to an end between April and July this year, 90 per cent are renewing and we are achieving five to nine per cent rent increases, saving our landlords having to pay renewal fees which would otherwise be due if renting out the property through a traditional letting agent.”
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I’m fortunately not in that position but still Selling Up.
Not news really, I see a Labour victory speeding this process up 🆘🆘
Oh yes, things will no doubt get a lot worse, when (not if) Labour get elected.
They will no doubt attempt to bring CGT into line with Income tax and bring out more anti-landlord legislation.
Even next year, the capital gains allowance is being reduced to £3000, but that is better than nothing I suppose.
My wife and I will still lose over £8000 each in CGT allowance.
We are 'being hung out to dry' by the government, whom, it appears, want us out of the private rental sector.
Yes 40% CGT tax on inflation as well as National Insurance on rental income
John Hughes completely agree. Will be voting Reform in the local elections and I hope that both Labour and the Tories take a right beating.
Its a shame that a few residential landlords are giving up on the businesses that could give them income for life. I have a rental unit in Stevenage that had an EPC of Grade E. My tenant had moved out to FTB a brand new flat. I took the opportunity to get my plasterer to install Recticel Instafit slimline insulation panels on all of the internal walls (those on the external elevations) because I couldn't get the other long leaseholders to jointly pay of cavity wall insulation, I took out the old gas combi boiler, that had been giving me problems, and got my electrician to install just two Dimplex Quantum night-storage heaters and an Economy 7 hot water tank. I've had the flat's EPC re-assessed and its now an EPC Grade C. With the proposed MEES legislation soon hitting us this unit is now fit-for-purpose for many years to come. I started the process by getting a draft predicted EPC from my long-time energy assessor who guaranteed the final EPC Grade C outcome. I'm close to signing a long-term lease with a supported living provider who will putting a disabled tenant into this flat.
I can't understand why landlords are giving up when the solutions are pretty straight-forward.
Because in many cases, the solutions are anything but straightforward. I shall wait to see if the EPC standards are revised because at the moment there is a conflict between energy costs and environmental considerations.
Martin continues to write his fiction for us to enjoy - EPC C with gas to EPC C with electric - I simply don't buy it! And if he were the super LL he pretends to be 'supported living provider' is not the way to make money. Perhaps he is ChatGPT?
You are a Dick!
Hi Martin, I assume that you are in this market place of property solutions. Retro- grading insulation is a con.
Yes, some of it works but it is a rip off to get it done! But I guess this is why you are promoting it here.
How much did all that cost though?
Inflation is running at 10% and she's achieving rent increases of between 5% and 9%.
The government are taking 40% of that increase in extra tax.
Mortgage interest has more than doubled for any mortgages coming to the end of their fix.
Chuck in the cost of EPC upgrades and tenants deliberately damaging the properties by refusing to heat and ventilate properly and it's hardly surprising her landlords are selling.
Also, there is no guarantee that the properties that reach EPC 'C' now, are going to reach it next time around.
They may even think about putting it up to 'B' to totally kill us off.
I am going to invest in other things and leave the hassle to those that remain.
I am not getting any younger and the stress is beginning to affect my health.
I'm out! One under offer and another on their notice although so far they haven't left and my hands are tied... No wonder I'm leaving this sh*t show!!
Two sold, awaiting exchange on a third, leaves three more to go. Hoping we don't have to serve notice on any tenants, but will probably have to on one tenant who has been in eight years (it would be great if she made us an offer to buy). Unlike previous years we are now intent on keeping rents close to market rather than leaving increases until vacant.
Sell sell sell, let's see what kind of job the government do of housing all the tenants we evict so we can sell after they've shafted the PRS, let's see if the BBC are running "rogue government housing" stories when they've persecuted the last private landlord into submission.
My sentiments exactly 👍🏻💰💰
Well Stevenage is not London and not burdened by the same rules for the years gone by and if Glaxo hadn’t moved there from Greenford & Brentford there wouldn’t be much to crow about their either, I done plenty Potters Heath Rd.
Looks like the EPC mandate will be pushed out to 2028. So a bit more breathing space in this respect. I think the drive to sell is not any single challenge but the sum of all the changes and the threat of rent controls/freezes threatened by Labour, Libs & Greens!
Exactly Rob, it is a multitude of things that are prompting landlords to sell up.
The thought of Labour's getting in at the next election 'fills me with dread'.
If you really want to cheer yourselves up read the small print hidden deep in the "reform bill"
Our guilt will be decided not at a court hearing where we have the right to present evidence and like everyone else are presumed innocent until PROVEN guilty beyond reasonable doubt
No, in the new Law especially for landlords and their families is our guilt will be decided by a tribunal
( just like military courts under martial law ) it is stated their decision will be final no right of appeal
There is no automatic right to attend be heard or even to present evidence in our defence ,the tribunal will decide what is admissible evidence at their sole discretion
if you are not terrified by now you really should be
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