Over a Quarter of landlords Want to Sell.
Landlords Looking to Sell Properties
Turbulence, extra regulation, higher interest rates, changes to tax rules and other aspects are having a major impact on the Private Rental Sector.
As available rental stock drops and rents increase, it has been claimed that over 25% of landlords or buy to let property owners are looking to sell in the near future. This claim comes from research carried out by cherryplc.co.uk. It also shows that a larger percentage of buy to let landlords will increase rets over the coming months.
Times are hard for most people and many landlords are also struggling with the increased day to day running costs of their rented properties. With profit margins dropping, selling is considered the only option by many, as well as looking to sell at the top of the market before prices start to noticeably fall.
Of course, with the current pressure on the rental market, with historically low availability, this will obviously increase those problems whilst pushing rents ever higher.
Cost Increases For Landlords
In addition to the outlined increased costs above, there are also regulation changes which could increase the costs still further. It is thought that a very high percentage of rented accommodation has an EPC rating of lower than C. Consultations are currently ongoing but it is believed that changes are likely with current proposals suggesting all rented properties must have an EPC rating of C or above. These changes are likely to be introduced from 1 April 2025 for all new tenancies followed by existing tenancies from April 2028.
With all the additional costs these changes to EPC regulations will further discourage new landlords and force others to sell. For those landlords looking to continue in the buy to let market, it is important to look at the options as soon as possible.
Improving Energy Efficiency of Rented Properties
Some of the more affordable ways to improve the energy efficiency of a property include options such as changing from high energy light bulbs to low energy LED bulbs. However, most improvements would be far more costly. These may include adding or improving insulation, installing an energy efficient boiler, double or triple glazed windows and doors and more. All these improvements will help with the energy efficiency of a property and the EPC ratings.
Once the traditional improvements have been carried out, there is then the option of renewable energy. However, these should be done in conjunction with energy saving techniques. Installing solar panels for instance, is a great way to save on electricity bills. However, this generally benefits the tenant unless bills are included in the monthly rent, in properties such as HMO’s or House Shares. Of course there is little point in renewable energy sources if the properly insulated to keep the heat in.
With the obvious costs, it isn’t difficult to see why many landlords are considering selling up. Of course, this may mean other landlords could increase their portfolios or new landlords entering the sector to benefit from falling prices. However, all signs at the moment suggest this will not be the case, and availability will continue to reduce whilst rents increase or remain static.
With the current pressures in the rental sector, we are always on the lookout for new landlords to advertise to rent a room in their own home, shared houses or complete properties.
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