The Royal Institution of Chartered Surveyors has added its voice to the chorus of concern over landlords quitting the private sector
In its latest market snapshot RICS says the long-anticipated Renters Reform Bill will increase pressure on landlords and may force even more to quit.
The warning follows hot on the heels of a survey by the National Residential Landlords Association saying that in the first quarter of this year some 33 per cent of private landlords in England and Wales said they planned to downsize.
This was up from 20 per cent the same time last year.
Meanwhile, only 10 per cent of landlords plan to increase the number of properties they rent out.
The RICS predicts that with demand continuing to far outstrip supply, rents will rise still further over the next few months.
Samuel Rees, RICS senior public affairs officer, says: “Demand for rental homes remains high, but stock remains low, and landlords are increasingly exiting the market – which is translating into higher rents.
“The government’s [Bill] will increase pressure on landlords and may force even more to exit the market.
“The government needs to ensure that proposed reforms to the rental market are delivered in such a way that it increases support for landlords and tenants and maintains and grows supply.”
According to the NRLA research 67 per cent of landlords say demand for properties from prospective tenants is increasing.
And in every region of England and Wales more than 70 per cent of landlords say demand has increased.
The NRLA is warning that the supply crisis is set to deepen further without action by ministers. It is call for the government to undertake a review of the impact of tax rises on the sector and develop new, pro-growth policies.
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We have seen a jump in the Landlords selling up, I see that 38% of our landlords are looking to leave
Supplies are 90% down on 2022
High demand for 75% of non uk residents are looking to rent in the Uk this April 2023
this is up 500% on last year.
Our housing issue is over crowded uk, that’s the problem.
It's only going to get worse, let the social Landlord's soak it up we hear time and time again how they manage their properties. Sorry that should be mis-manage!
The policy of levelling up needs to be changed to levelled!
😱🆘 wow that is bad.
I’m a LL Get me out of here.
Yes selling up. Government and Councils have seen to it that being a PRS LL is no longer an option for mr.
They don’t build anything like enough properties to cover what is needed and are alienating LLs and forcing us out.
We have propped up the rental sector for so long but now nearly every other week they are putting another obstacle in our way and forcing us out.
Families without homes will be queuing daily at Council Offices looking for non existent properties to rent.
They will end up down the B&B & Cheap Hotel route. Which the Councils will have to fund. These will become over stretched.
Where do they go from there?
I’m constantly having emails from local councils for properties to rent to the families that they are desperately trying to re home but most of these people have already been evicted for damage, antisocial behaviour, rental arrears.
They don’t want to know you as a LL after they have secured your property.
I got caught out once by there promises but Never again.
Could go on for ages about reasons to get out of the PRS LL sector but you get the general point.
Preston Council operating a scheme called homes from houses or something like that, called me when I have a tenant in there who has trashed the place and now going through court to evict.
Basically they will rent it out for ten years and you do not get anything? You still have to service the mortgage and carry the risk. The best thing is they cannot move forward with it as the little toe rag in there has not paid the council tax and that needs resolving first.... Any support on that front and you can all guess the answer!
This time last year I was planning to buy, buy, buy. Due to a completely incompetent mortgage broker well and truly stuffing up a mortgage application I finished up just buying one instead of the several I'd intended. Paying cash for that one wiped out the deposits for 2 more and the stress of dealing with useless brokers put me off attempting anything else at the time.
I guess with what has since happened he may have done me a favour???? Who knows how things will eventually turn out.
Right now I'm certainly not buying anything and have been having vague thoughts about which would be the best properties to sell should things get even more toxic. A certain amount will depend on how terrifying my tax return is. I strongly suspect I would be financially better off selling one or two properties. The problem is which tenants to make homeless. All of them are decent people who simply don't deserve to be treated like that but equally I'm not a charity.
Jo I feel your pain. I too was on a similar train of thought untill I got my head around selling my only income ' my portfolio '. I have given all my lovely tenants a right headache and now some I know I will have to evict as the council is telling them to stay put . This is a long road but one I'm sticking to. I will reinvest elsewhere when everything is sold up. I'm actually relieved about it all now the process as started. But it is a challenge, and I'm staying positive about it 😌
Jo
You're a strong enough character to weather the coming storm which will either pass or not be as bad as feared.
A declining supply and growing demand is always a good position for any business model and there will always be enough good tenants to choose from so that the nightmare tenants can be avoided.
Tenants, on the other hand, need to know who their real friends are - not politicians, Shelter, Acorn, Generation Rant or any other "activists " who only help rogue tenants at the expense of the decent majority.
Decent landlords and tenants have always been on the same side and this will not change. There will just be many decent tenants who can no longer find a decent landlord and suffer in the name of political dogma!
We invested in a rental property seven years ago, as a way to boost our small pensions. We are pleased to have been able offer a home to 3 different families in that time, but now we are in our 70s and seriously wondering if we really want the extra work and stress involved.
Give it to an agent to reduce hassle and only sell if the hassle is still too much.
My wife and I have been over 50 for over 20 years now and still actively running a fair size portfolio but we would be bored without it.
I got an agent to reduce the hassle. A large chain. They have caused me no end of trouble from failing to fill out the deposit paperwork and took banned tenant fees and refused to remedy. They overcharge on builders work. You have to keep chasing them
To do the EICR and gas certs. So much grief. Do it yourself. Or better still sell.
Nick
I should have said " a small local agent with experienced staff who use your own choice of tradesmen".
You're totally right about the big national chains!
Agreed. But who is buying the properties we are selling? I’ve seen no research and it would surely be simple for Land Registry to analyse their data?
What do HMRC know and why are they keeping schtum?
There is still a lot of foreign money anecdotally from Hong Kong and wonder if that was behind Starmer’s announcement last week to limit foreign investors in our housing market.
Good question who is buying all the houses on market?
William Hutchinson......Eh???
ChatGPT?😂.
Real issue is s24... taxing landlords into oblivion is now really starting to bite, and forcing landlords, very reluctantly, to put up rents
John Chart weighs in:
My wife and I hold 20 resis and 2 small commercials.. We were toying with the idea of expanding - prompted by the shortage of accommodation and higher rents. But two considerations have killed off this
direction of travel:
1, ballooning mortgage interest - which kills off enhanced rents and
2. proposed abolition of S 21 - and the nightmare scenario this is likely to pose.
So - we have decided to sell one by one and use the net proceeds to reduce mortgage debt on retained stock.
The big killer is S 21 - that will encourage more rogue tenants, and without wholesale review of the court system an unfortunate landlord with a rogue tenant will suffer years of storm and strife,
Amen.
That’s why I’m selling. S21. Even good tenants will be free to turn rogue. There will be no deterrent.
Government interference leads to price increases. You don't need to be intelligent to realise that just know a little about history. The government have interfered too much and prices have increased, simple as that.
Dani. Of Course you are right but interference is too mild a word.
They increased Rents no end with Regulatory Requirements, Legislation, income tax hike, SD hike and S.24 tax on turnover.
Then just for good measure Licensing Schemes robbing billions from Private Renters.
Then turn around telling Tenants they are your friends and want a Fairer Renting Deal for you by robbing you blind.
Come on now what’s an, I Q.
What do they expect. They keep hitting again and again PLL . Rules/ laws. Forcin g it on us. It will push rents even higher.
GET OUT NOW, BEFORE THE RUSH
Edmonton County Cournts
19 weeks to open an email or letter
(was quoted as 57 working days, but 19 sounds smaller)
Judge given tenants 7 months to complete a defence and counting.
Will be well over a year, with 20k arrears
(equal to a year and a half living for free)
PUT YOUR MONEY WHERE YOU ARN'T HATED!
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