Previous estimates that half a million landlords are set to sell up may actually be a massive under-estimate, a property industry figure suggests.
Jonathan Rolande says the real figure is likely to be far higher - and warned the situation is going to massively drive rents up further.
Rolande - a representative of the National Association of Property Buyers - says: “There are currently around six million privately rented homes in the UK. It is being forecast that around 100,000 will quit the market every year between now and 2028. But I fear this may well be an underestimate. A larger number will be long gone by then.”
He gives a series of reasons why the figure is big and getting bigger.
“One factor is rent. They are currently rising at potentially unsustainable levels. Secondly, EPC changes, that may require expensive works to reduce emissions, are leading to many exiting the sector as well. Tax changes, particularly for portfolios held in a Limited Company, are also a factor, as is the growing adverse public opinion about landlords. Increasing maintenance and repair costs due to inflation” he lists.
And in addition to the much-hyped removal of Section 21 eviction powers from landlords he says high interest rates for saving will present a preferable and lower-hassle investment alternative.
He adds: “Many tenants currently happily living in their home will be forced to move out, even if, in the end, another landlord buys it.
“Rental homes, despite all of the negative press, provide valuable, temporary accommodation for millions of people who don’t want the long-term commitment of owning. Many younger people enjoy the flexibility of letting and can move from job to job and city to city with relative ease.
“Once hundreds of thousands of homes disappear to the owner-occupier market, choice will be more limited and rents will almost certainly rise.
“The impact is far reaching and, as is usually the case, the people who suffer the most from this will be the poorest, those already with the fewest choices. Perhaps the only reason to be optimistic is that the government may finally decide to use some of the windfall of Capital Gains Tax from these sales to put in the measures that will help everybody have access to an affordable and safe home. But time will tell.”
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Well that didn't really explain a lot!
"One factor is rent. They are currently rising at potentially unsustainable levels."
Why does that make landlords leave?
"Tax changes, particularly for portfolios held in a Limited Company, are also a factor,"
What changes??
I’m certainly selling up.
The Government and Councils have hammered a wedge between themselves and LLs.
They will now reap the rewards of there actions.
In the past and still they rely very heavily on the Private Sector LLs to prop up their pathetic housing policy’s.
They Will now have many many more families joining the already massive amounts of people who desperately need housing that they don’t have to give them.
They don’t build anywhere near enough properties each year to cope with the current deficit never mind what this massive PRS LL sell off will cause.
This is the Bed made by Government and Councils and now they will need to lay on that bed.
B&Bs and Cheap Hotels will be the big beneficiaries of all this but in due course they will become full.
So good luck with that one Government and Councils.
Where do they go from there?
Im selling up as we speak I can’t take anymore it’s ruining my life the unpresedented rise in interest rates has been the straw that’s broke the camels back half my portfolio is on trackers can’t move them coupled with all the other stuff they have thrown at us im done
Me to. Make that half a million +1 and after 40 years. The whole system sees landlords as a target, totally unfair and they deserve the housing chaos they are going to experience.
The irony is that those organisations campaigning for S21 to be abolished are directly causing tenants to be kicked out of their homes!
Result of our gormless government trying to fix something that wasn't broken
10/10 for use of the word gormless, haven't heard that word in years!
The constant hitting on landlords will only serve to cause the country a bigger problem. With numbers required for building per year never been hit in over 30years the private landlords have supported the country.
Making it difficult to remove tenants will drive people away from this sector, realistically landlords only truly benefit by capital appreciation so the new rules on capital gains will hasten their departure. Good luck finding homes for people and the next stop will be B&B's and cheap hotels.
One might hope that such a headline causes Government to pause and think, but don't hold your breath.
I understand it was the Thatcher Government's introduction of the Housing Act with Section 21, so landlords could be in control of THEIR properties, that led to the boom in new private rental properties, after years of rent controls and decline.
Scrapping Section 21 is bound to reverse this for individual landlords, though I don't know about large Build-To-Rent companies: are they somehow going to avoid the negative affects or perhaps they don't care?
If there are valid concerns about the mis-use of S.21, presumably it could be changed to avoid these; as done with 'revenge' evictions following tenant requests for repairs. But arrogant politicians want to be seen to do big things, rather than small changes which may actually help (and less likely to have unintended consequences).
Section 21 brought Assured Shorthold Tenancies. With the abolition of Section 21 we go back to assured tenancies. For possession under Section 21 we currently go through Accelerated Possession Procedures, meaning NO HEARING. However under Assured Tenancies you will have to go down Section 8 procedures. It currently takes 12 months to get your eviction order. Provided the tenant does not come up with fake counter claims such as disrepair. Something that was never mentioned before. Although any counter claims must be lodged before the Hearing, nonetheless judges seem to allow the counter claims on the Hearing day. I have had them all. Protected Tenancies, Assured Tenancies and RIP AST. These on one side and purposed open ended tenancies are the icing on the cake. So I am out.
Nothing shocking about it... Why wouldn't landlords be leaving the cesspit? ... I've joined the mass exodus... Selling as we speak and lining up the next one... And the next one... And... Bang goes my pension but better to get out now than lose more control over my investments in the future which is inevitable when the housing crisis gets worse and the dozy government finally start to realise they've made an a*se of things and need our properties. What then....? Compulsorily purchasing or even stricter rules and regulations which makes it impossible for us to sell our own properties? 10 years ago I'd have scoffed at such suggestions but now I believe ANYTHING is possible.... and for that reason.... I'M OUT!
why would half a million landlords quitting be a surprise to anyone,doh
My feeling is the Government considers us small fry and driving us out is not a problem for them plus make a killing will SD and C/gains as we are forced to sell, probably Inheritance tax as well I am sure it has killed a few off.
The Build 2 Rent of multi- Storey won’t have a problem they’ll be exempt.
The Construction work has to continue for jobs and keep the economy going, which means The Big Boys are taking over or they wouldn’t be doing it, we are only collateral damage.
The CONCRETE MIXER
CANNOT BE ALLOWED TO STOP.
Same as others my sell off will start soon, just dreading evicting some excellent tenants, but I am not taking any more government nonsense. 💵💵. God help those to come who need a home.
I've got a meeting this weekend with 2 great long standing tenants. I need to massively increase rents and if they can't afford it, then i will need to sell. I have some room to manoeuvre as selling others which means I can reduce the mortgages, but i'm not sure which way this will go.
So much for levelling up!
Andy
Somehow I have reported your comment when I tried to like it - doesn't seem to be any way to unreport it - sorry!
A pity the Government/Gove aren't hearing all of this.
I'm sure you'll tell the poor affected tenants who is to blame, and sorry you're being made to do it.
I think it's an underexaggeration. PRS landlords are being monstered on the instructions of comrade Gove, and the tenants takeover is in progress and on it's way.
Guessing hell will freeze over before PRS landlords vote Tory again and relying on tenants etc to keep them in power likely to go pear shape.
The trouble is that with the likely hood of a future Labour Government, things will no doubt get a lot worse than they are now.
'Out of the frying pan into the fire' comes to mind.
I find it so depressing trying to run a business now knowing that it will not be viable once Section 21 is gone.
I have no heart at all in improving things in the flats, and no interest in them.
Obviously, I do the requisite repairs etc. but I know that the business is finished.
If you are selling up, it's massively important to make the tenants aware this is due to Government Policy, and to contact their MP to ask why they made them homeless.
I market and let my own properties - I have mentioned this before on t his forum but I make very sure all the tenants who are unsuccessful when applying to rent EXACTLY why they might find it difficult to get a rental home and who is to blame so that is about 40 or 50 people for every house marketed! I have also told George Freeman MP that I am doing this
Hi Robert, the same thing happened to me I seem to be reporting you when I was supporting you Sorry I struggle with technology but build a house no problem. I wonder which is more important.
I don’t know how I am supposed to do digital quarterly Accounts. At landlord meeting other night they were amazing for me to say such a thing, they thought Its was no difference that the Accountant had to do it anyhow, how much out of touch can they be if I don’t have all the information how can he do it he’s not running the Business, anyway its quadruple Accounts fees.
4x accountants fees, something else for tenants to pay for
Oh it’s ok, they got Butlins and Center Parcs to house them - they’ll be ok
There will be VAT on every bill of course.
Thank god that they have put the digital tax date for landlords back.
Yet another thing to contend with on top of everything else.
No wonder I have got high blood pressure and have to drink red wine every night.
Although, I did do dry January.
There is no doubt about it, that the continuous tinkering by Government/s - even more so here in Wales where the wonderful Welsh Assembly imposed the "Renting Homes Wales" act on the housing sector which included legislation that has not been legally workable to the present time which is somewhat concerning when the deadline for complying with the particular aspect of legislation is the 31st May 2023. (Ironically we were being told by the so called Welsh Housing Minister in May 2022 that the Welsh Government were fully ready for the issuing of the legislation.
Add this to the raft of other impositions from Westminster plus the increase in interest rates and it is little wonder that many smaller Landlords are becoming exasperated and have decided to sell up.
There is no doubt that the Investors who are buying up properties at this time will undoubtedly do a good job and will continually increase rents in order to ensure that their investments provide decent returns.
John, my friend leave the red wine alone and all other alcohol as well , its the last thing you should be doing, Alcohol increases Blood Pressure / Hypertension, back to a cup of tea instead you’ll be like a new man, leave the drinking to the young, we all had our day ☕️
The attack on the Private Small Landlord by the Government and Councils , Is forcing Landlords out , and Tenants onto the streets. It is only going to get worse. A lot worse.
Section 21 Removed.
Section 24 Tax Relief on Mortgage Payments.
EPC Requirements that not cost effective
Breathing Space , and even worse Mental Health Breathing Space.
Selective License fees.
Re classification of what is an HMO by councils.
When you have to put the rents up , or have to sell up and your tenants of many years are going to be homeless. Ensure you let the Tenants know their misery is caused by The Government . and where appropriate by the Councils.
I make it a point to tell tenants exactly why they are losing their homes tell the politicians and the gestapo bullies
It will be interesting to see which of the MP's and which executives in the tenant organisations become highly paid consultants to the two or three billion pound corporates who will control the entire rental sector
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