Landlords are selling up in droves

[MNisMyGuiltyPleasure]

I am a landlord. Not full time but I have a couple of flats I let out. I have been for many years and bar twice, have always had good tenants. I am still friendly with a few of them who moved out to buy their own place, in fact. I go above and beyond what's expected of me because I want my tenants to enjoy living in my flats. However I am getting more and more concerned about the hike in costs related to letting properties. This has already started driving many, many LLs to sell up, with the result that the number of private rentals is dropping, driving rents up. And I'm serious thinking of selling up and finding somewhere else to invest my pension.

This morning another landlord shared this article www.property118.com/property118-founder-selling-his-best-property/ and this started a conversation about the risks of letting, which are only making more people get out of the lettings market.

So to all those people calling landlords greedy, and saying they shouldn't put rents up: if they are, it's likely they are because their costs related to letting are going up, and they need to cover themselves to meet additional costs should tenants not pay (cost of living or whatever other reason). My accountant last year told me to assume I will only make money from my flats when I come to sell them, and to budget to break even at best until then.

I get that shelter is something everyone should have, but please don't blame landlords for the hike in cost of private rents. Because if they all left the market (which may well happen at some point), the situation would be worse, not better, for tenants.

I am sure I will get a few people to flame me for the above, of course. If they do, I'd love to hear if they are renting, letting, or if they own their homes.

I cannot really believe anyone has posted this in all seriousness. I really hop I am just missing the sarcasm

Most people don't have an issue with landlords behaving like businesses (proper ones that abide by regulations), the issue often with the private rented sector in the UK is too many small time landlords DON'T behave like proper busiensses.

Best landlord I had was a business man who owned commercial and residential properties. He had all the key trades under contract so things got fixed quickly and efficiently, he accepted the need to recedorate every 4 years or so, he understood his obligations and kept up with them . No he wasn't our friend and I was under no illusion he was in it for any other reson than the money and would be as ruthless ans anything given the chance, but he dleivered a good and efficient service for the money we paid him.

@MNisMyGuiltyPleasure water companies build bad debt into their prices so anyone not paying their water bill the cost just gets split among those who do pay. I suspect gas and electricity do the same. Not fair but the big companies won't take the hit.

I cannot really believe anyone has posted this in all seriousness. I really hop I am just missing the sarcasm

I think you are, it's dripping with it

Exactly - and that drives prices up. LLs have to build every and all risks into what they charge in rent. But a lot of PPs here think that we should barely cover the mortgage as they don't see all the other costs we need to cover...

I am now buying a new btl property and putting it under a limited company where interest rates can be written off against tax, and at same time selling one of my btl houses with lovely tenants in and paying a lot of capital gains because I have had this btl for 17 years so has gone up a lot in value but have to do it before end of March as capital gains changing then. I think this is the way to go for me going forward. I can put 2 other houses into ltd company in 3 years when out of fixed rate mortgage and only recent buys so hardly any capital gains tax to be paid.

Sadly some tenants not in a position to buy in a million years still think it’s someone else’s responsibility for their inability to better themselves.

FIL is the worst sort of landlord. Inherited a property 15years ago, it was run down but had been an elderly couples pride & Joy. FIL is emotional about it, so when the tenents wanted to remove the 1980s fitted wardrobes he said no because they were 'good quality'.
The whole place is a mess. A lick of paint but ancient kitchens and bathrooms. Not great for the people living there, they might have paid less than market rate but it a house has deteriorated and will be a pain to sort out when 88year old Fil finally pops off.

They're not giving them up around here (London commute/NW Kent)...private landlords are charging extortionate rents and still getting queues of would be renters.

We need more SH.🙁

I hope they are. That will give tenants security, and better maintenance.👍

Not necessarily maintenance or lack of it is a problem in our area.

Oh, our one is ok, they don't care what I do for improvements, give permission for everything, reasonable rent (for London borough), and I've got security of tenure. I wouldn't touch private landlords with a bargepole.🙄

Ah but you can afford to make improvements. Not everyone can

We definitely do need more social housing.

My family rent out a house but they look after their tenants (I've posted about it before). The tenants are paying their mortgage so they don't charge above and beyond. Long term tenancy.

Yet three friends have been having trouble with greedy/feckless landlords. One had paid a mortgage term (nearly 20 years) paid for so many repairs themselves over the years and rejuvenated the paintwork every couple of years. The LL wanted to put the rent up yet again. Multi millionaire landlord with multiple properties, maximising profits for his children by not doing maintenance.

Another has a broken smoke alarm (connected to mains) and a back door not opening. But if a fire hazard. The LL won't make repairs.

Another one is similar story of landlord charging extortionate rent but their boiler doesn't work and the ceiling has collapsed in one room. Evading making repairs.

It's disgraceful!

This is purely a business decision. Sometimes investments work and sometimes they don't.

I don't demonise most buy-to-let landlords but it's not like they are running a social service.

No, you're right. I am lucky that my pensions and savings allow me to do things.

But, our SH landlords do turn out, for everyone, for "urgent" repairs, such as heating, hot water, electricity etc, within 2 days (at most), and non urgent repairs are dealt with within 28 days.

Some private landlords are fine, but many aren't. My rent is high (for SH), but lower than a private rental would be, in this area. I have a "life tenancy".

So, I'd still not touch private landlords. 🙂

The market needs landlords. It isn’t as simple as ‘everyone sell up and let’s crash the buyers market’. Some people won’t get mortgages, others will be in a circumstance where buying isn’t an option.

I am not a landlord myself but I understand the requirement for it.

What I am getting incensed with are these R2R ‘developers’. Who will rent a property, divide it up and then rent it back to the market for a much higher price point. Or they’ll rent it out on a short term let through air b&b. It shouldn’t be allowed.