A landlord sell-off is a major driver of tenant moves after 50% of property professionals said that was the main reason for renters moving home last year, a survey has found.

According to PayProp, this landlord sell-off is a growing concern – and something that campaign group Generation Rent has highlighted recently.

Just 11.3% of those surveyed said eviction was the cause for a move.

The rental payment platform’s survey also showed a high number of landlords – it’s more than 54.5% – are actively looking to sell rented properties at the time.

‘Why are so many landlords selling properties?’

The firm’s managing director, Neil Cobbold, said: “The question we should be asking is, ‘Why are so many landlords selling properties?’

“One reason may be the age of the average landlord, which according to the latest English Private Landlord Survey was 58 in 2021.

“By now, they may be thinking about retirement and taking the money they have invested in property as an annuity.

“However, in other cases, a lack of profitability will be an issue.”

Make life uncomfortable for many landlords

Mr Cobbold points to an absence of tax reform to address mortgage costs, higher buy to let mortgage rates and increased regulation combining ‘to make life uncomfortable for many landlords’.

He adds: “If this trend towards fewer PRS properties is going to be reversed, the Government has to find a way to keep landlords in the PRS and encourage more investors to join the sector.

“If not, supply will remain under pressure and rents will continue to rise, making life more difficult for tenants who are already feeling squeezed.”

The firm’s Rental Confidence Index also highlights that 66.7% of landlord properties are being sold to first time buyers – and are lost to the PRS.

Rising tide of tenants being made homeless

This week there was a spat between the National Residential Landlords Association (NRLA) and Generation Rent over the rising tide of tenants being made homeless.

Firstly, the NRLA’s chief executive, Ben Beadle, said: “Landlords selling up is the single biggest challenge renters face.

“The only answer is to ensure responsible landlords have the confidence to stay in the market and sustain tenancies.”

But Ben Twomey, the chief executive of Generation Rent, fired back: “There will always be some landlords wanting to sell, for example, because they are retiring or because their mortgages have become too costly.

“The short-term issue is that tenants have an appalling lack of protection when landlords choose to sell up – even under the new Renters (Reform) Bill as proposed, tenants would only have two months’ notice when evicted for this reason.

“Landlord groups won’t lift a finger to improve this position for tenants, while using the risk of homelessness to demand their own concessions from government.”

Blog Post from Property 118

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