Updating post from Reddit.
The latest Landlord Trends report (Q3 2024) by Pegasus Insight reveals that most landlords feel the new Labour government is anti-landlord, with 91% saying the Labour government will be negative for landlords.
Only 6% of landlords say they plan to expand their property portfolio in 2025, while 41% mean to sell property next year. Leveraged landlords with outstanding buy-to-let mortgages are more inclined to sell.
Top concerns include increases in taxes and costs, anti-landlord bias in government policy and loss of control over property and tenant selection.
In bad news for tenants, 26% of landlords say they would increase rents to offset potential losses in the event of higher Capital Gains Tax.
Sources: Property Industry Eye, Property Reporter, Property Wire & Financial News
Who are they selling too? Other landlords or tenants?
Likey big companies seaking a monopoly in the area in order to put the rents through the roof
Some will be tenants, some will be landlords, and some will be new buyers.
The overall effect being a reduction in rental stock.
And a reduction in people wanting to rent if first time buyers or current tenants are buying them.
Increasing population.
That is happening regardless.
Sorry I’m not sure what point you are trying to make, but the population and therefore demand is increasing.
It’s increasing at a rate quicker than houses are being built, rentals being sold off reduces the availability of rental properties. The big issue is the majority of current renters are not in a position to buy regardless of the number available, therefore rely on rental stock.
If a rental is sold, it is still sold to a person (or organisation)
That person may rent it out, or may live in it.
If they lived in it then somewhere down the chain, someone who would have been needing to rent, will now buy a home.
The population increasing, and not enough homes being built is a completely different issue, and effects housing regardless of if people are buying or selling rental stock.
The total number of houses isn't affected here, just how many people are renting vs how many are buying.
Landlords buying or selling neither creates houses from thin air, nor does it remove them from existence.
Is your point that supply-demand impact is neutral? Recent rent increases suggest otherwise.
Yes housing supply is neutral as a result of landlord sales, but the mix of Rented vs Owned supply shifts. And sale prices have been going down, whilst rent prices are soaring.
Now can we please stop these silly point-scoring arguments? Landlords are net selling, rents are going up at a rate not seen for decades. This is not a coincidence.
Rents have been going up regardless of if landlords are buying or selling.
Oooookay. You carry on, enjoy.
Divorced Boomers needing their own place, Bank of Mum and Dad helping kids move out, foreign investors, serviced housing providers, REITs, and second homes closer to work.
I'm sure tenants are in the mix but house prices haven't come down - so only tenants with changed circumstances that have built up a deposit.
If there are 100 house sales, only 50 of them are to First Time Buyers. What % of them 50 are tenants and not people moving out of their parents' homes?
Literally all of the buyers you mentioned would otherwise be or will continue to have tenants.
I provided examples of individuals who are not currently tenants and are more likely to purchase a property. The data indicates that only half house sales go to first-time buyers, and only a portion of FTBs are currently tenants.
Point being just because there are fewer landlords, doesn't mean people have no place to go. The market pressure should equalize home ownership reasonably fast. People have been holding out on buying for a while. We're already seeing it.
Rented accommodation is more densely populated. It’s not as simple as 1 house is the same under landlord or owner occupied
I don't think anybody is selling rental apartment buildings to turn into condos, at least not at a scale to worry about. We're talking detached/semi and townhouses, owned condos, etc.
That’s exactly what I’m talking about. A detached semi, townhouses, condos, when owned by landlords they are lived in more densely than OO. We need more houses before we push the LLs out.
Point is that as new houses come on to the market it wont give currents tenents more option to buy, we have a massive buffer of live at home kids that has built up over the last 50 years that will simply equalise and keep the pressure on the tenents.
Even if labour exceed all expectations they wont resolve the housing crisis inside 5 years.
We have an arguably larger buffer of renters who are waiting for houses to buy. I don't have stats so if you know of where to find that info I'd be all ears, that's just my experience in a metro area.
If landlords sell up It's good news for home buyers, home building levels are terrible so shifting stock away from renters will be good news for them. Not good news for tenants though, or at least not good news for most of them .
You're assuming every new home owner is someone moving out of their parent's house, though. Many, many more will be renters buying a first home which frees up rental spaces.
I realy am not
> The data indicates that only half house sales go to first-time buyers, and only a portion of FTBs are currently tenants.
However, it is very common for a FTB to live with family whilst they build up a deposit to buy a home.
>a portion 9/10ths is a portion. The whole disagreement here lies in "what is that portion" which truthfully I don't know the answer to.
Also, there are many people who are tenants who would not be FTBs. So they're not even being captured in that "portion".
The problem Labour are trying to solve:
Wage to house price ratio.
Any successful solution within a 5 year term will at least stagnate house prices and decrease rental demand.
this is horrendous for leverage.
Off course it will solve the capital gain problem for those Nouveu Landlord :P
I think labour is misguided. Trying to please the electorate and in doing so leaving the basics of economics behind. I say this as wage to house price ratio isnt off. Any two people, working full time earning minimum wage can afford a 3 bed semi with drive and garden.
As we saw in 1925, there is a shift for a modernisation to house buying. We live in a more consumption based society where most simply aren’t happy waiting literal years to save a deposit and complete the purchase process when you can buy a car, holiday, change jobs, separate etc within minutes.
With time, society and the economy will fight it out until there is change. Either society will need to become more patient or economist institutions will need to make it easier for people to buy.
large corporations who will prob buy over asking price like what happed in america
Rents will go up because of reduced supply. Genius move by Labour. 3D chess level stuff.
Are the landlords going to destroy the houses?
Owners living in houses they own are occupied at a lower density than rental housing
Ye, people enjoy parroting that fact a lot. Where did you get it from?
Basic logical reasoning
If a landlord has 5 rentable rooms, why would he volunteer to not rent those rooms out
Vs
Owners wanting rooms as offices or guest rooms with no profit motive to not do that (mortgage is the same either way)
So it came out of your ass, gotcha.
Please Keep it Civil
So you have a below average iq
Gotcha
Says the man who thinks everyone lives in a HMO and doesn't appear to know familes live in rented houses.
Is the population increasing?
That's not reduced supply, it's increased demand. I'm not sure how landlords not selling their houses is going to decrease demand?
Fewer houses to rent is a reduced supply. Most people don't have a deposit ready to slap down and have to rent for ages to save it up.
It's a reduced supply of rentals...Not houses. You'll find very few people worried about the supply of rental properties specifically...Except for landlords. And your second argument is 100% circular - Can't afford a house? Spend your money on rent until you can.
If there is a massive glut of new houses on the market then either prices will drop, or mortgages will be made more affordable, there are levers that can be pulled to solve that issue. There's no levers to solve a lack of houses to buy.
I'm not a landlord but my understanding is that a large number of renters aren't in a position to be able to buy a property (unable to raise the funds necessary for a deposit, unable to get a mortgage, uninterested in owning a property at this time etc)
For those renters, the reduced supply will leave them with more competition when it comes to finding a place to rent.
You make a big assumption that there will be reduced supply... Nobody can predict that. The houses will still be there, and a large number of them will stay as rentals. The ones that are bought by someone to move into is one less person/family in the rental market. It's not exactly 1:1, but you talk like the properties just vanish into the ether.
Would love to know what surveys like this have shown in the past. I strongly suspect that, like the % of people saying they plan to emigrate if a party wins an election or implements a policy, it's always way higher than people who actually follow through.
This post, brought to you by Conservatives UK.
Pegasus Insight does research clients that include Natwest, HSBC, Nationwide, Virgin Money and several other banks.
Financial regs have been poor for landlords for 40 years and most landlords haven't realised, I'm not sure their opinions on the current government are vaguely relevant.
That’s funny because the market has been flooded with landlords’ properties since before the election
Ever since George Osborne, the number of homes to rent has been decreaseing.
No one mentioned 'to rent'
They are bought up by new owners to live in.
Our rental property in prosperous Midlands town with very many wealthy overseas students and local thriving car industry and games tech industry. Rentals in massive demand to foreign professionals.
Foreign owners won’t care what British people pay for capital gains.
bAd NeWs FoR TeNaNtS.
lol won't someone PLEASE think of the poor landlords?
This would be good news if we were building sufficient housing (especially social housing) for those tenants to fall back on instead. No sympathy for landlords as most of them are sucking tenants dry for their own selfish benefit, but you can't change a system like this overnight.
Landlords who claim to have made a decision based on rumours rather than facts, are morons.
Property fire sale? Sounds like I won't be a tenant much longer!
No house owner wants to sell for a loss though, so prices unlikely to drop.
Supply doesn't really impact prices that much. The bigger impact is to do with the affordability rates the banks/mortgage lenders set.
If mortgages move to 5.5x salary then prices are set to soar
Only because owners are stubborn to accept lower offers. If those full 41% of landlords "planning" to sell actually want to sell next year, they would have to. Really though we know they wouldn't, this is just whinging, and I agree it's not probably not going to happen
Would you sell your house for less than you paid?
When did I say I would? Of course people don't want to sell at a loss. My original comment was taking the piss a bit.
You say that as if you have savings lol
5% price drop, tops.
If you can afford the deposit, yes. Else they’ll get snapped up by someone else. A good house will always sell.
Well if the house market suddenly floods then house prices will fall, the joys of supply and demand! So that will probably stem any mass exodus as I’m sure most won’t want to lose money by panic selling
It's good news for tenants, for one, most wont sell and two it may make banks give mortgages to people who been refused them for not earning enough when the rent they pay currently is more than the mortgage payment would be.
As far as I know, there are no changes to the regulatory affordability requirements for home purchases. I'm not sure where you got this idea.
41% of what? 41% of a sample size of 20? 41% of conservative MPs? 41% of landlords who already have a property on the market?
These statistics are just dumb
Read the text? Read the Article? 41% of surveyed landlords plan to sell at least 1 property. I coudnt tell you the sample size however, none of the articles mention that.
That’s almost nothing to go off though. It almost makes the article void of any meaning. The headline looks shocking at 41% but then the sample size isn’t specified or any further detail given. The media typically does this for clicks but the reality of the situation is probably nothing close to as dire as it sounds.