Why are so many landlords now selling up do they anticipate a housing market crash coming?

coypondboy

Landlords selling up as rising interest rates and inflation kill the market any thoughts if you are a landlord at the moment?

Chris_English

Do you actually have any data to suggest that landlords are currently selling up in greater numbers than at other times?

The changes a few years back regarding how rental income is taxed may well still be causing some sales as landlords use the end of a long-standing tenancy as the trigger to get out, but I’ve not seen any data showing this to be the case.

george4064

Property is generally considered an ‘inflation proof’ asset class, so maybe there will be greater demand for property as inflation increases?

dunstonh

If data is being relied on, is it because many landlords are transferring their properties into limited companies?  We have seen a good number of our clients who are landlords do this.     On paper, that would be recorded as the landlord selling up but in reality, its just a change of structure.     We have seen other landlords sell up but they were mainly due to yields no longer being attractive and the requirements of being a landlord increasing beyond what they wanted.

Thrugelmir

coypondboy said:

Landlords selling up as rising interest rates and inflation kill the market any thoughts if you are a landlord at the moment?

Tenants were granted a stay of execution during the pandemic. Market will need time to settle down. Always be investors that have good reasons for wishing to sell, whatever the market conditions. 

SusieT

Landlords may be selling smaller properties to purchase larger ones, selling 1 large property for 2 smaller ones or in different areas with higher yields. Where is the data saying this, and is there anything that shows if they are transferring the properties to a Ltd or purchasing other properties?

masonic

I think a quick review of other posts by the OP could be enlightening.

jimjames

coypondboy said:

Landlords selling up as rising interest rates and inflation kill the market any thoughts if you are a landlord at the moment?

Most landlords will have fixed rate mortgages or no mortgage so why would they look to sell? Rent is one item that should be kept in line with other rises so should be able to track inflation, at least over medium term.

(Just like the OP I have no data to substantiate either of those claims other than personal experience)

BrockStoker

Probably just pure coincidence, but I know of a landlord with a portfolio of ~600 houses who is cashing in her chips. I suspect it's just a case of "getting to old and wanting to have less stress".

tacpot12

BrockStoker said:

Probably just pure coincidence, but I know of a landlord with a portfolio of ~600 houses who is cashing in her chips. I suspect it's just a case of "getting to old and wanting to have less stress".

I would have thought that such a landlord would have a professional portfolio manager in place and have absolutely no stress whatsoever. 

Thrugelmir

tacpot12 said:

BrockStoker said:

Probably just pure coincidence, but I know of a landlord with a portfolio of ~600 houses who is cashing in her chips. I suspect it's just a case of "getting to old and wanting to have less stress".

I would have thought that such a landlord would have a professional portfolio manager in place and have absolutely no stress whatsoever. 

Age catches up with everyone. If there's no successors, winding up is often the choosen option.