Landlords - are you selling up or will do when your tenants leave?

theartfullodger

chrisw said:

Uriziel said:

I have looked at the bill now and I would definitely sell if I was a landlord. You essentially lose all ownership of the flat. If you have been a kind landlord and kept the rent down you would not be able to raise it to market value so you will always lag behind. I don't see why anyone would keep renting out. You will also not be able to ask them to leave and sell the property. It says you need to give a legitimate reason, which is what? If it goes to court they will side with the tenants. If you tell them you need it for your family they'll probably tell you that your family can rent elsewhere. If you need them to move so you can sell you will be told that the tenants can stay until you find a buyer or even until the buyer has a completion date which will put off most buyers.

There will be no problem increasing the rent to the market rate. The only new issue will be that there's no back dating if the tenants appeal.

There's no problem tenants proposing rent reductions i...

ReadySteadyPop

Albermarle said:

Though this answer is too simple, in my opinion. Firstly, we must consider that the property isn't being knocked down, it is being sold to someone else. The new owner may rent it out, they may have rented previously but have bought this house, etc. Secondly, even if we ignore this and assume the houses on the market will have no effect on rental demand, we could apply supply and demand economics again to realise that an increased supply of houses on the market might cause house prices to go down. You could then consider that if house prices were to decrease, whether that would have an impact on rents.

Could also be that if more properties come on the market and prices decrease, more people currently renting could afford to buy their own home. So less rental demand.

https://www.zoopla.co.uk/discover/property-news/rental-market-report/

Point 2 from "Key-Takeaways" has only just started IMO.