Landlords are being hit by hidden costs which destroy their profitability and force them to quit the private rental sector.

And those costs go far beyond the well-publicised higher mortgage rates and proposed EPC regulations.

LandlordBuyer says that from licensing schemes and insurance premiums to maintenance inflation and compliance requirements, the true cost of owning a rental property is rising sharply, particularly for smaller landlords with one or two properties.

It cites government estimates suggesting the average cost of upgrading a rental property to meet future EPC standards could reach £5,400 per property. Selective licensing schemes in some UK councils can cost landlords up to £1,000 per property every few years.

Rising repair and maintenance inflation has significantly increased the cost of tradespeople, materials, and emergency property repairs. On top of this, higher mortgage refinancing rates and void periods are continuing to reduce rental profitability for many landlords.

A LandlordBuyer spokesperson comments: “Between compliance requirements, maintenance inflation, insurance increases, licensing fees, and higher mortgage costs, the pressure is growing from every angle. For smaller landlords in particular, the margins are becoming increasingly tight.

“We’re speaking to more landlords who feel overwhelmed by the ongoing financial commitment of holding onto rental properties, especially older homes that require continuous investment.

“As a result, many are now exploring alternative options, including selling tenanted properties in a way that avoids disrupting tenants and removes the stress of ongoing ownership.”

LandlordBuyer says it has seen growing interest from landlords looking for quicker and simpler exit strategies that do not require tenants to vacate before a sale can take place.