Mis-guided Exodus?

Many of the Landlords leaving the Private Rental Sector right now (and potentially facing a huge Capital Gains Tax trap – we’ll see in November) are older, and started at a time when being a Landlord was a very different thing and BTL mortgages were only just becoming a significant “thing” in the mid-90s. Don’t forget that the vast majority of Landlords have 1 property, and many in their own name, so for them there are no economies of scale. Many Landlords who have been in the game for a while may have left their rent alone for long-term tenants, and are now operating with much smaller margins – making repairs and maintenance a bigger headache. A point I made in a previous week is that what is unsustainable cannot continue – so a new balance WILL be found – although admittedly with some potential pain beforehand. The sad thing is that whatever hurts Landlords, ultimately hurts tenants – if costs increase due to regulation, mortgage rates or whatever else, then rents must increase, or supply will diminish. If there is little point / profit, then rental properties available on the market will reduce and again, rents may well rise again. It’s never been more important to ensure that you get quality tenants, vet well, get guarantors where able, or, simply lease out your property to a company who take care of everything and sit back. But yes, there is alot of panic amongst those who let out their properties, and it certainly seems the case that being a Landlord outside of a Limited company is getting more and more unviable – due to added pressures on top of already draconian and arguably unfair tax measures for those in the property business and trading in their own name. But, for those “brave souls” remaining in, or looking to enter the sector, this really could represent a unique buying opportunity to pick-up already tenanted, or recently tenanted properties (that therefore are likely to be fully compliant or close to it) coming onto the market. In their droves potentially… meaning a potential glut of supply, and a buyers market for investment properties. I expect the Government announcements in November around Capital Gains Tax hikes will likely only strengthen this sell-off – after-all, those who have held on for the longest time have the most to lose, and with likely hikes coming in from April 2025 potentially, we could see a rush over winter. Only time will tell.

Landlord Sales Agencies experiencing surge. Landlords are increasingly selling off their properties due to rising financial pressures, stricter EPC requirements, and Labour’s proposed Renters Rights Bill. Various agencies are available to help landlords sell quickly, even with tenant issues, by offering tailored solutions like voluntary tenant relocation and negotiating rent increases, ensuring competitive prices and fast sales. This will add additional pressures the the rental sector – and produce a further upwards pressure on rents, as the supply of rental properties is diminished.

UTILITY OF THE WEEK. Unbiased. Struggling to find a good Mortgage Broker, Accountant, Book-keeper or Solicitor for your burgeoning Property Business?... Whilst I'd always recommend word-of-mouth first, and using professionals who are property investors themselves, this site can be useful starting-point to get you off the blocks if you are stuck.

Multi-generational living. Multi-generational living is emerging as a potential significant trend, offering property developers new opportunities. As housing costs rise, more families are choosing to live together, creating demand for homes with flexible layouts, shared and private spaces. Developers can capitalise by designing homes that cater to larger families, appealing to higher-budget buyers and overseas markets.

Renters Rights Bill. The Renters’ Rights Bill, introduced 11th Sep, will ban Section 21 ‘no-fault’ evictions and implement Awaab’s Law and the Decent Homes Standard in the private rented sector. Landlords failing to address hazards could face fines. Other reforms include banning rental bidding wars and limiting in-tenancy rent increases, ensuring tenant security and fairness. However – if you squint hard enough – there are some concessions for Landlords. And (sigh of relief) it’s still possible to serve notice to sell your own house!

Who are M2P? Married2Property are a family-run property company that aims to build social good through property.

UK House Prices experience surge. The UK housing market is experiencing a resurgence, with 44.2% of local authority districts seeing house price growth surpass inflation, up from last year. After a challenging economic period, house prices have risen 2.73% annually, with strong growth in regions like Yorkshire and Northern Ireland, demonstrating market resilience.

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And Finally… If you never pick a lane and stick with something long enough, then you’ll continuously be chasing that shiny penny around in circles – and never perform.