Good Lord! Landlords selling up in significant numbers
In a comprehensive survey of the lettings sector the tenant onboarding and referencing firm has found strong evidence of a landlord exodus.
Almost half of all landlords have either already begun selling off their properties or are considering doing so according to the latest State of the Lettings Industry Report.
In the report Goodlord questioned landlords about whether they have tried reducing the size of their portfolios over the past 12 months – a third said ‘yes’ and a fifth said they will actively consider doing so over the next 12 months.
When those same landlords were asked why they were selling up, they gave five key reasons:
- Increasing legislation – the Renters’ Rights Bill and the abolition of Section 21 ‘no-fault’ evictions were particular concerns for landlords, with 77% believing they will have an adverse effect on the sector.
- Energy efficiency standards – 61% of landlords held a negative view of the changes and were worried the new regulations requiring properties to meet higher energy efficiency standards would involve significant costs.
- Economic pressures – landlords said rising mortgage rates and increased operational costs were squeezing profit margins.
- Shift to short-term rentals – a number of landlords surveyed were moving their properties into the more lucrative short-term rental market (e.g., Airbnb).
- Taxation and alternative investments – changes in taxation, along with better investment opportunities beyond the rental sector, have also been causing landlords to sell up.
There was a warmer welcome for the introduction of a Decent Homes Standard to the private rented sector, with 41.6% of landlords in favour and 40.7% in favour of the new ombudsman service for dispute resolution.
we risk exacerbating the supply crisis, driving more landlords out of the market and limiting affordable homes for everyone.”
William Reeve, CEO, Goodlord said: “Reforms must align with broader efforts to increase housing supply throughout the country, especially in high-demand areas.
“Without this alignment, we risk exacerbating the supply crisis, driving more landlords out of the market and limiting affordable homes for everyone.”