Rental Crisis: Why are Landlords Selling Their Properties?

Welcome back to the channel! I'm William Gale, and today we're diving into a critical issue affecting the UK property market – why landlords are selling their properties in droves. Is the buy-to-let market really dead? Let's explore the alarming statistics, the reasons behind this trend, and how it impacts both landlords and tenants.

In this video, I'll break down:

1. Current State of the Rental Market: Why rents are rising and demand is still high despite a slight slowdown.
2. Key Reasons Landlords Are Selling: From rising mortgage rates to new legislation and government policies.
Impact on Tenants: How the exodus of landlords affects rental supply and the housing market.
4. Strategies for Success: Tips for landlords to navigate this challenging market and opportunities for tenants ready to buy.
5. Why This Matters: With over 10 years of experience building a UK-wide homebuying company and a nationwide estate agency, I bring you insider knowledge crucial for understanding these market dynamics.

Key Points Covered:

- Alarming stats: Almost half of UK landlords tried to sell their property in the last 12 months.
- Rising mortgage rates and their impact on landlords.
- New regulations like Section 21 evictions and Awaab's Law.
- Long-term effects on tenants and the rental market.
- How to navigate this market as a landlord or a tenant.
- Don't miss out! If you’re a landlord, tenant, or interested in property investment, this video is essential for you.

🔗 Additional Resources and Links:
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👋 Who am I?
My name is William Gale, and I’m the founder and CEO of The British Home Group of Companies. Curious to learn more? Check them out below! I took the leap into entrepreneurship in 2012, quitting my job to start my first company and I haven’t looked back since! I hope you find my content valuable.

**🇬🇧** If you’re in the UK:
🏡Want me to buy your house?►

🔑Want me to sell your house? ►

💰Need help with financing/mortgage?►

⚖️ Need assistance with solicitors/conveyancer?►

CHAPTERS:
00:00 - Introduction
01:49 - Rental Market Right Now?
03:28 - Why Are Landlords Selling?
06:12 - How Does This Impact Tenants?
07:37 - Can the Government Help?

[Bradonomous]

Won’t someone please think of the landlords?

[mrmuds]

The problem isn't landloards, the problem is buy to let mortgages. If you have the cash to buy a property outright, good for you. But you should not be able to borrow money just to "buy" a house and get someone else to pay your mortgage. If buy to let mortgages didn't exist, properties would be cheaper to buy and rent.

[gregarmstrong]

Always amazes me when you hear landlords try to spin the narrative that they are just kind, caring people trying to provide a service for their beloved tenants. Landlords have taken a basic human right and turned it into a commodity that makes themselves rich explicitly at the expense of people who can't afford that basic human right. It's a predatory business model and it only serves to drive up the property market and make ownership even more unattainable for everyone else, thus maintaining the supply of tenants for them to bleed dry.

The reason high interest rates are making it difficult for renters to buy is because the mass buyup of property by landlords has increased the average house price to 8 times the average income. Interest rates were higher than this all the way through the 70s and 80s, but house prices were 3 times the average income, so people could still afford a home. Interest rates aren't the issue. Interest rates in an unaffordable market are. Once again. Landlords are the problem. Not the solution.

You cannot convince me that paying off the mortgage on your 10th property using money from someone who can't afford their 1st property is a moral thing to do. If you've managed to convince yourself of that, you need some introspection.

[lolmeister]

This needs to get worse before it gets better. I was evicted from my 2 bedroom house last year. The banks simply refused to let me pay them what i had been paying my landlord for years without a single missed payment.

[FormerCityFinancier]

Your point of landlords selling are:

"cashing in on higher property values, so they're hardly losing out".

IS COMPLETE NONSENSE!

These landlords are often selling with a tenant in situ.

This will likely mean they have to sell at a deep discount and any equity gains will be lost in selling at a discounted price.

I'm a landlord also, and celebrate those greedy landlords being forced out. Nothing sweeter than negotiating with a landlord desperate to sell, but trying to hide their desperation. 😂

[sfm]

Councils are going bankrupt putting evicted private Renters into emergency accommodation as landlords exit the sector en mass because its now a poor investment- plus a huge % are simply retiring which was expected - no surprise there - and can not stop someone selling their private property and/or retiring!
So, Councils/gov need stop abdicating responsibility & do their job and build more social housing not sell them off!. How short sighted & stupid expecting to have social housing needs met by the Private sector.🤦‍♀️

[hrhux]

The sad music over the fact that people aren’t renting anymore… dude, its because renting SUCKS!

We cant afford affordable housing because wannabe millionares are buying up all the affordable houses and turning them into expensive properties, putting an absolute chokehold on the market. And buying properties just for rent raises the price of buying a home for all of us!

So my generation is left holding the bag, with most rent too expensive to afford and never being able to afford a house because its all being taken up by property leeches and airbnb tycoons. FUCK. THAT.

If youre a landlord, look into the concept of economic rent. You are contributing nothing to society, and are in fact creating a net negative by taking away resources to make an excess, unnecessary profit for yourself. You’re a leech. Sell your property. Bring home prices back to a reasonable level. Allow people to have access to affordable homes again, instead of hoarding them for yourselves. We’re done paying your mortgages. You did this to yourself.

[BittermanAndy]

Houses should be homes, not investment opportunities for rich people to get even richer.

[justinporterr]

Thanks for spreading real numbers forget the haters.. its youtube...toxic as it gets

[nancyhood]

When most landlords have sold up, go to shelter they will help, or the council, they help as well,

[andrewcarter]

You didn't mention the tax changes. In particular, the way interest relief is given. It's possible to have no profits and still have a tax bill.

[bogstandardash]

Unless you have several and make it your job, or if you have paid off the mortgage, its really hard.

BTL really is dead for the person who has an interest in a single rental property, with a third of the mortgage paid off.

The tax on rents before you make a profit is a killer, couple that with 6/7% interest on BTL mortgages and its not an enticing proposition. So you pay 7k on every 100k you borrow and the government want to tax you on the rent you will be using to pay the interest on the mortgage. Its about break even financially but you still have the work and liability of being a landlord.

When I have to renew my BTL mortgage I will be selling and the equity is going into the S&P500. I can make a better return on my money doing nothing!

[klopptomisticfreeworld]

I lost my section 21 case because of a missing gas certificate during covid and ended up paying my tenant his court fees not to mention the thousands I paid to the solicitor. I decided to raise the rent because the tenants was paying peanuts for the last 13 years whist my mortage has quadrupled but now the tenant has challenged the rent and it gone to a tribunal and this will probably end up in another court case. Any advice will be appreciated as this is killing me.

[wontbelongnow]

This what you get when governments screw landlords on tax and section 21 abolished and c rate epc certificate before 2030 so it's a case of sell my rental houses . had nine now only got 3 left and I will sell rest before 2030 .

[hrhux]

Do you disagree with section 21 and more rights for renters? You shouldnt be able to kick us out of our homes whenever you feel like it. You should be forced to provide us with adequate care and prices and respect. This is peoples lives were talking about, not just your side hustle!

[andrewfallon]

He never even mentioned section 24.. which is prob the biggest reason.

[Travelman]

well, maybe if the landlords stopped eating avocado sandwiches and drinking soy lattes, things would get better for them...?

[coolmonkey]

What a coincidence. Im buying a home your company is selling

[simonclarke]

Sad Music.What A Parasitical Human Being You Are