Rental Crisis: Why are Landlords Selling Their Properties?

The rental crisis in the UK is getting worse, and with landlords selling properties & leaving the market, it's only likely to get worse. So in this video we unpack what's at the root of this issue, and if landlords could be the real losers here.

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[nicolasbenson]

Because so many people overpaid for homes even while loan rates were low, I believe there will be a housing catastrophe because these people are in debt. If housing costs continue to drop and, for whatever reason, they can no longer afford the property and it goes into foreclosure, they have no equity since, even if they try to sell, they will not make any money. I believe that many individuals will experience this, especially given the impending mass layoffs and rapidly rising living expenses.

[wendypierce]

The question under all of this: who’s buying? Is it individuals or megacorps acquiring all the homes?

[sudonim]

The houses aren't being sold of to the renters. They're being sold to large conglomerates looking to secure, if not a monopoly, at least an oligopoly.

[gentlemandemon]

Landlords and home owners have too much power, from the ways they can leverage power over renters to their ability to shout down new housing developments to preserve their "investment." Housing is shelter, not an investment.

[BodyByBenSLC]

I work in property management. Land lords by and large don't evicted people who are clean and pay on time and don't cause trouble. People complain that a land lord can evict but don't understand if every eviction has to go through lawyers and attorneys that cost thousands of dollars and months of work to get a 1 person out that is loud or threatening people or filthy. Now times that by 5% of residents that's a huge expense that is passed on to other renters. So people think that getting rid of no reason eviction will be a benefit but most likely rise your rent.

[realest-]

House prices are way to high in comparison to wages.

[damianbutterworth]

The sewage system has blown up outside my house because of all the new houses built. No chance of a doctor. Need to sort all the other stuff out first before building new houses. Then when they do build too many they say there is no parking and you have to pay to park???

[stevenwilliamson]

Everything the government does appears to be aimed at squeezing out the private landlord and encouraging corporate lets. Whilst this may arguably improve standards, the result is reduced choice for the renter, and subsequent higher rents paid to corporate landlords. This would be less of an issue if there was an increase in the provision of affordable social housing, however this is not the case.

[Medicine]

Rents are dictated by supply and demand. Policies that reduce supply will always make the situation worse. Making it more difficult for people to be landlords hurts renters more than landlords or would-be-landlords. If you have the capital to buy a rental, you have alternative forms of investments that yield better returns. The benefits of investing in a rental are related to stability--having a consistent income stream. Government policies that are purportedly "renter friendly" often deter new investments so supply goes down while demand stays high, so prices go up, so they double down on the said policies. Rinse and repeat. Eventually, there will be such critical shortages of housing that the government will have to raise taxes to build "affordable" government housing. We all know how great living in government housing is.

[metalhead]

The deduction of mortgage from rental amounts was a huge perk but also massively unfair given home owners and renters get no similar perk, so it was right to abolish it

[MrSigmaSharp]

In Cambridge, home owners wouldn't let new development happen because they love their houses getting more expensive by the day. There is a fight over any rental property that shows up on the market and rates sore. All junior doctors that I know are either moving to other cities or leaving the country altogether. Then those homeowners have to wait for a year just to see a doctor. It's all a loop people. If you raise a wolf it's gonna bite you in the ass.

[azieltobias]

In my opinion, a housing market crash is imminent due to the high number of individuals who purchased homes above the asking price despite the low interest rates. These buyers find themselves in precarious situations as housing prices decline, leaving them without any equity. If they become unable to afford their homes, foreclosure becomes a likely outcome. Even attempting to sell would not yield any profits. This scenario is expected to impact a significant number of people, particularly in light of the anticipated surge in layoffs and the rapid increase in the cost of living.

[samuelgrainger]

imagine having a spare house to sell its a different world for some people

[PhantomRaspberryBlower]

The real problem here is that the cost of housing is so high. Whether you rent or buy it's the huge amount of capital needed to pay the house vs salaries makes it increasingly unaffordable.

[Shalashaska]

The true TLDR for renters is a very short video, simply consisting of "your fucked"

[MimaLopez-jtvq]

The current housing crisis in UK is unfolding as a multifaceted challenge that requires our collective attention and strategic solutions. As real estate prices continue their upward trajectory, the dream of homeownership is slipping away for many hardworking individuals and families, leaving them in the throes of an unsettling rental market.

[gromph]

I feel like there is a question if raising number of individual landlords selling up and getting out of the rentier market, who are they selling their houses to? They cant be selling to their renters because they are finding it difficult to get a mortgage. It would be a rational decision for people to get into renting properties for the first time now because interest rates are so high. I feel like this leaves only large rental property firms and asset management firms to gobble up this housing stock like blackstone did after the 08 financial crash.

[musitecture.vienna]

I rented for years in England before moving abroad. It was only through experiencing how other countries treat those who rent did I realise that tenants in GB receive terrible treatment: from unregulated landlords to absentee agent management companies, no fault evictions, surprise property inspections…UK renters face demeaning conditions with very few rights. No wonder so many break their backs to take on massive mortgages, just to secure a safe roof over their head.

[COR]

Wow, missed answering a major question: Who is buying the houses the landlords are selling and what are they doing with them? If people are buying them to live in then it's awesome news because every new home buyer is one less renter. If they are being bought by other investors then that's generally not as good but will usually result in the property being put up for rent again.

There is more to this story that TLDR didn't even mention.

[de]

The point where landlords realise they aren't savvy business investors and just had it easy. Kinda reminds me of all the crypto crazies who thought they were neo buffets.