Landlords Fleeing! Why So Many Rental Homes Are Up for Sale

[@propertyaccelerator]

Read MORE about it on our blog: property-accelerator.co.uk/landlords-selling-why/

[@fortnitefred1351]

BlackRock wants houses cheap to become the biggest landlord.

[@propertyaccelerator]

👍

[@monky_dust]

This

[@timrowley4274]

Have 3 properties for sale and have accepted very good offers on all 3. Time to get out of dodge.

[@hbmustangs]

what will you do with the funds?

[@grolfe3210]

@@hbmustangs Pay a big chunk of CGT!

[@propertyaccelerator]

Good luck with everything Tim

[@user-gz6tx6yp3v]

@@timrowley4274 Have you thought about commercial? There's a couple of companies running courses, quite eye opening to be honest. Either that or whack it in an index fund like Vanguard maybe.

[@markbuhler5721]

I’ve been a landlord since 1996 , life is simply too hard. We’ve sold 6 properties over the last 2 years, 5 properties vacant and up for sale. Lots more to sell over the next few years. Can’t wait to put my feet up with no worries and compound interest

[@ary6039]

Mate how rich are you and I'm struggling to have a roof over my head for even 1 for myself😭

[@simonray398]

“Life is simply too hard. We’ve sold 6 properties” haha 😂 🎻

[@user-gz6tx6yp3v]

We've all been there. My first place was a wreck. And it took me 3 years to save 10% down and while all my friends were out having fun, I very rarely went out or spent money, didn't take one holiday, invested in a stocks and shares ISA and just kept grinding and doing overtime. I also increased my skills at night school with work which increased my income as I changed jobs. You can do it, but it takes focus and will. You need to sit yourself down and say right. Next 3 years is all about that deposit. That's what our parents generation did. It is hard but you can do it. Especially if you go for a fixer upper.​@@ary6039

[@AJ-ni7lj]

Where are these properties, would you consider selling all as a bulk sale?

[@propertyaccelerator]

Good luck with it all.

[@f4zn0m97]

WEF do clearly say "You will own nothing and be happy"!!

[@seansmith445]

Yes, they let us all know of their communist aspirations.

[@propertyaccelerator]

Not me

[@legalfictionisfraud]

@@propertyaccelerator I guarantee you... That means you...

[@monky_dust]

Yeah but just give Brits football and they are fine with it.

[@littlekaza3344]

I gave up renting my 2nd property in 2004- ran with my cash as I could see regs were changing and life was becoming difficult for landlords.

[@propertyaccelerator]

👍

[@dennishaggerty463]

A lot of small landlords bought property post 2008 crash as interest rates on savings were steadily and artificially lowered by the Bank of England (quantitative easing) so a lot of people went into BTL as a way to get more than 1.5 percent on their savings. Although the government made it progressively less attractive financially, a lot of Landlords carried on as property prices were still rising storing up a future nest egg for when they sold. This model fell apart when interest rates went up and property values peaked in late 2022 and then values started falling. That’s when the smart money got out. Those landlords who carried on are now about to be hammered for selling up with a big hike in capital gains tax. There is a narrowing window to get out before the CGT changes and section 21 abolished. And, let’s be honest, even sticking money in the bank is probably making a better return than the ROI of BTL’s right now. For landlord haters who are cheering at this ‘perfect storm’ driving out smaller landlords, I hope they realise that this will drive up rents and families will find themselves homeless either because of the shortage of properties to rent or the high rent of the few that remain. Haters must also realise that the only way a landlord can accept the massively increased risk of renting out their property is to charge their tenants enough money to mitigate or justify that risk.

[@onlinemoneyhub8513]

@@dennishaggerty463 Lovely submission! However, can you expantatiate why you feel the rent would go up?

[@oblong3039]

great write up and way I think. Haters don't realise markets and prices are always about supply and demand....simple economics. Totally agree on better of with less red tape, tax and earn 5% in bank without the hassle.

[@davideyres955]

When you sell you need the property to be vacant to get the widest possible potential buyers. If landlords are getting out then you don’t want a sitting tenant. So people are starting to get notice meaning they need a property to live in. Increasing demand. Empty properties are coming on the market meaning there are less properties available to rent at least in the short term. Less supply. More demand and less supply. Prices will go up. Let’s face it get out now and keep saying 20% extra of the profit you have made or wait till October and possibly see something even worse. It’s a no brainer.

[@JT_2024-c8j]

Also means more property stock for buyers. More sellers, more room to negotiate, more of a buyers market and less need for rental properties. Hopefully more first time buyer incentives. Markets will adjust. There will always be rental stock from people that don’t have mortgages on their rentals.

[@dennishaggerty463]

@@onlinemoneyhub8513 interest rates are much higher, and compliance with over 150 regulations take up more of your time and cost money, and you are faced with Milliband pushing for EPC minimum C rating by 2030, depending upon your property the compliance costs could kill your business. However, the biggest issue is the need for a ‘Section 21 abolished fund’, every landlord will need a financial contingency to cover the increased risk of nonpayment of rent for an extended period as a result of the inability to take repossession of your property as was previously the case using section 21. In business this is usually called a risk premium. Sorry, but for a landlord to absorb this significantly increased financial and time absorbing regulatory risks, rather than throw in the towel and sell up, there must be financial compensation and that can only be met through higher rents.

[@oilyrag7429]

The only landlords will be the big banks soon! All by design ! Good old two tier

[@propertyaccelerator]

And the people bashing landlords will wish they could go back to their previous landlord.

[@Spidey5ense]

They will probably orchestrate a firesale

[@floydstewart2956]

I do agree - but would expand on that by saying that this is all seems to be part of a bigger plan that has been played out for at least a decade, maybe more, and will continue to play out over the next decade, engineered by Klaus Schwab and his frankly terrifying ideology that he’s pushing via the world economic forum. All of our political leaders have bought into it, not just Stalin-starmer

[@robmc3338]

The Torys like big organisation that can afford to have out brown paper bags full of money and call it "consultancy"

[@seansmith445]

@@robmc3338It’s not just the Tories the whole lot of them are corrupt to the core.

[@JamieW-o7b]

Mine will remain empty until they stop treating landlords like criminals!

[@propertyaccelerator]

👍

[@matthewspry4217]

@@JamieW-o7b my property became empty in June and I refuse to let it again until their is a change in attitude

[@legalfictionisfraud]

Keep it... Have it!!!!

[@hoomee119]

I hope you are charged a hefty fee for an empty property, but I think you are a billy 🐂 💩'r and your not a landlord.

[@Newlinjim]

Sounds like a strong business model.

[@joannelockwood9716]

There is more to being a landlord than collecting the rent. Boilers, bathrooms, kitchens, interior and exterior repairs and renewals all need redoing and replacing at some time. In some years you can make a loss. If you have a good tenant that has been with you for many years, or is elderly, then you may not feel inclined to put up the rent to the market rate, knowing that your tenant will struggle to afford it. We are not the government whose job it is to take as much money as they can from us to squander on wars etc. Some of us care.

[@propertyaccelerator]

Exactly

[@JohnSmith-bb1cl]

That's very decent of you I do however question if your kindness is going to loose you the very capital you or your relatives worked hard to pay for. Increased capital gains taxes and section 24 and section 8 which will hit people's credit files so they will end up not paying you anyway could well end up costing you in excess of 75k on the average home, do you care enough to loose that?

[@joannelockwood9716]

@@JohnSmith-bb1cl I appreciate your reply and yes, the decline does seem inevitable. We are losing more of our freedoms, assets and income every day. Praying for a miracle and doing what I can to object to Agenda 21/30.

[@Newlinjim]

Stats would suggest you are not in the majority.

[@meggriffin4802]

4 properties (2bed flats) where I used to live all up for sale. They were previously rentals. Have noticed more and more 1 and 2 beds for sale rather than to let

[@propertyaccelerator]

🙏

[@SusanKennard]

I am a landlady and really happy with my tenants who have been with me for over a year. No plans to sell ❤

[@propertyaccelerator]

Awesome Susan

[@rockitman8807]

been a landlord for 35 years / selling up as we speak . tenant rights , major tax changes the big factor . what are the government thinking !

[@NeverGetBoredTV]

Mm where are you based?

[@davideyres955]

They are socialists so not thinking much. Tax and spend. They are going to chuck money at public sector, build tons of houses on debt and claim success because they have a lot of growth. Growth based on debt isn’t real growth as we saw in 2008. If it goes as I think it will we will be destroyed as a country. Starmer is a disaster.

[@EbenBransome]

That nobody should profit from people's need to have somewhere to live.

[@renegade2853]

"You'll own nothing and be happy"

[@mrmeldrew693]

Driven blindly by ideology. Just like the winter fuel payment issue that is a massive PR loss for them, but Starmer is ploughing on regardless.

[@RichT1982]

Been a tenant for last 4 years. Am now buying a house and moving. I like the house I’m in, but historically the landlord has bumped the rent at every opportunity by 15-20%. This will be at least 25% next year due to Labour changes so I’m getting my own house.

[@propertyaccelerator]

Congratulations on buying your own home, feels so much better to own.

[@allykhan8594]

A LOT of London landlords have sold up, the estimate is 350,000 since 2019! I guess the tenants will now buy the £million houses.

[@propertyaccelerator]

Just means rents going crazy

[@nutrition182]

I wonder who is buying up those properties selling?

[@allykhan8594]

@@nutrition182 you really think tenants on £20k-£35k are able to buy houses 3 beds in excess if £800k.

[@Carlos-fv2fm]

London is no go zone, nobody wants to live there to begin with

[@youtubeman5033]

None of my tenants could get a mortgage if they wanted one for different reasons I know this because some have tried and been told no,there is going to be a lot of homeless people very soon, 30 people applied for my last house and I have a long waiting list,

[@nutrition182]

If mortgages were not so high, running costs of a property e.g. inflation and cost for new kitchens, bathrooms, boilers, flooring, soft furnings is far more than 15 yrs ago landlords would charge less rent. It's not fair on either the renter or the landlord that they are pushed into charging high rents.

[@propertyaccelerator]

🙏

[@Newlinjim]

Mortgages are high because you are removing supply. Pricing is always a function of supply/demand. You are removing supply @ the same time treasury’s are increasing the supply of $ both of which are inflationary.

[@davidmacdonald3506]

Just making it easy for big banks and investment firms to buy up all the housing stock.

[@propertyaccelerator]

👍

[@Cdd923]

It’s so unreasonable to apply capital gains tax to inflationary gains. There needs to be an indexation allowance before increasing CGT on property.

[@propertyaccelerator]

🙏

[@annacomnena217]

Alistair Darling got rid of indexation.

[@JohnSmith-bb1cl]

As an investor in many different sectors I have had both good and bad investments the ones that have turned sour have one thing in common the exit stratagy has either disappeared or has changed. Section 21 is the only real exit stratagy, section 8 can result in a more expensive exit and together with increased capital gains, section 24 taxes and maintenance costs property becomes uninvestable with a high chance of losses. The big corporations sounds like a repeat of the mortgage crash in 2008 except it's banks giving houses to people that can't afford to rent, we could be bailing them out in 2030

[@propertyaccelerator]

🙏

[@mart34]

The mortgage interest tax relief, makes no difference to landlords who have no mortgage on their rental properties. I get the feeling this change was to allow the big players to swoop in and take the market.

[@propertyaccelerator]

👍

[@nutrition182]

Indeed, Blackrock, Vanguard etc.? who is buying up the properties? Also, if true allegedly Muslims get mortgages that are interest free from their own banks? allegedly also can have mortgages over 120 yrs as 3 generation so who can afford to buy properties in London as an example? so a 900,000 k mortgage costs them 1000k a month and let it for 3 to 4 k a month? this is giving a massive advantage to another culture while our younger generation cannot get on the property market without being completely stuffed over financially.

[@nigelcheeseman3369]

Muslim banks don’t charge interest, as that’s apparently against the teachings of their religion. They get round it by charging administration fees. Don’t get the idea that some people are ‘getting away with it’.

[@Danielcullen-gl4xd]

Hi James the MP’s won’t even notice what’s going on in the private rental housing sector for about another 2 years? I pedict what will happen is they will start getting inundated by their constituents at their local surgeries of stories of surging rents and homelessness 😢and even then they will probably have to go off and get their personal assistants to research whats caused the crisis.

[@ricardosmythe2548]

It's an engineered event. Big corporations will buy them up 1000 at a time at super low interest rates. Maintenance costs will be minimal because it will be done at scale with trades employed fulltime and because they'll be limited companies the cost of any financing will be written off profits before there taxed. The BTL mortgage model that's helped to push prices up to date has just increased the profits these companies will enjoy.

[@scienceevolves4417]

​@@ricardosmythe2548 The BTL has been an absolute disgrace! Should have never happened in the first place!

[@ricardosmythe2548]

@@scienceevolves4417 I don't have a problem with BTL generally if it's a cash purchase but the model of mortgaging a property then renting it out for the cost of the mortgage plus maintenence plus profit margin to people who are deemed by banks to much of a risk to cover just the mortgage payment but are fine to pay the inflated rental price is backwards, damaging to peoples prospects in life and has only been allowed to prosper up until now in order to push rents up that these big corporations will profit from in the future as small investors are pushed out of the market.

[@allykhan8594]

@@Danielcullen-gl4xd unfortunately, you likely to be correct.

[@propertyaccelerator]

I agree, I expect it will be like parts of Scotland where you get 40-50 people apply for 1 property.

[@joebacchetti5890]

Penalised for being a Landlord and now Starmer wants to penalise Landlord's for leaving the market?

[@allykhan8594]

Make CGT losses to claim against Gains.

[@aldwim661]

Penalised for leaving life anyway

[@scienceevolves4417]

Penalised how? This is not a tax on the LLs, CGT is a tax on all those who dispose of any asset not just RE. Section 24 could certainly be argued to be an anti-LL taxation measure but not this one.

[@allykhan8594]

@@scienceevolves4417 cgt for residential is not treated as other cgt, anyway im selling up going Malaysia. Closing my business of 20 years and claiming cgt loss of £150k, i export to e.u and u.s.a. selling rental too, claiming another cgt loss £150k. I'm not pissing my time sacrificing for my family to give it to lazy welfare dependent people.

[@propertyaccelerator]

True

[@123prestolee]

I’m a landlord, it is what I do for a living, and I’m very much in for the long haul. Hard work, combined with treating my tenants respectfully will look after me in old age. It’s not a sprint.

[@propertyaccelerator]

Same as me, I have never sold a property and never plan to.

[@rudbel88]

It's common to rent in Germany and quite a few other European countries. UK is very ownership centric. Starmers policies are going to drive many away from the UK. Problem is you'll have big corporations buying up the properties and owning them, like BlackRock . Etc

[@propertyaccelerator]

🙏

[@seansmith445]

Surely it’s better to aspire to be a property owner rather than a renter?

[@MrA1wizard]

Perfect time to be a landlord 😂…..less competition

[@propertyaccelerator]

Exactly

[@apiscator444]

Decided to gift our rental property to our children early this year, in lue of Labour plans.

[@propertyaccelerator]

Good idea.

[@robertsmuggles6871]

When anti-landlord policies were adopted in Ireland in 1998, rents increased by almost 50% over the subsequent three years. British MPs seem indifferent to the havoc they are causing to renters. And strange that the Uk press gives them permission or approval. Their hatred of landlords blinds them to the suffering they are causing. I'd like to see Parliament turned into a public toilet - 'redeveloped' you might say.

[@propertyaccelerator]

That same has happened in other places as well.

[@marissakeynes2532]

Yes the gentrification of the House of Commons. 😅

[@deepee21104]

what goes round.....comes round........rents are obscene in my city, and rentals are coming on in a steady stream for sale.....all this will achieve is higher rents.....only way out is to bring private landlords back to the market......and to do that they have to make buying property to let more inviting ....or a storm will ensue if they dont..............

[@propertyaccelerator]

Agreed

[@1ForTheShieldz]

Governments have waged war on renting as a business. This is the result. Labour are going to make it much much worse as well.

[@propertyaccelerator]

👍

[@grantbeerling4396]

James, thanks for a balanced and fair assessment of the marketplace (unlike some other macho channels).

[@propertyaccelerator]

Thanks Grant appreciate it.

[@TigerLilly-ch9ue]

Starmer is probably wanting more BTR (Built To Rent) apartments - a step closer to the 15 minute cities which discourages car ownership. He wants private landlords out and is making it hard for them. BTR’s are popping up everywhere - especially in city centres as more shops and offices close.

[@propertyaccelerator]

🙏

[@nancyhood8395]

We, husband and I, have 10 btls ,over 16years ,put all onto repayment mortgages from the beginning, was told we were mad ,its wrong tactic ,but when interest rocketed ,it did affect us ,but because we concentrated on paying the mortgage down, we are at 30% ltv,it didn't affect us as most landlords with high leverage, the ones that said ,our tactic was wrong ,thus we have had to raise rents but nowhere near market value price ,thus keeping good long term tenants , in a good well maintained house ,and the tenants know the facts ,so are pleased were keeping the rent reasonable,as the same dwelling elsewhere is at least £200 more elsewhere,knowing when to gamble ,and when to consolidate, is the key ,not greed!!

[@propertyaccelerator]

Nice work

[@a.i.2418]

Well done! How much is the £200 discount in terms of percentage? I read 15-20% discount based on market rate makes tenant happy.

[@nancyhood8395]

@@a.i.2418 yes 17% to be exact,,its like we're 2 years behind in time ,rather that with excellent tenants ,than chasing profit ,with more risks

[@a.i.2418]

@@nancyhood8395 thanks for replying. I couldn’t agree more. We do the same, about 16% below market rate. A good tenant is worth its weight in gold as they say. All the best!

[@mattanderson6672]

Thank you Sir

[@propertyaccelerator]

Welcome!

[@gerry2345]

I like this vid. Good information. Not a landlord but if I was I would be selling,.

[@propertyaccelerator]

Thanks

[@royalalloy3471]

The Autumn budget is going to be fantastic lol

[@1ForTheShieldz]

Got to live the uk sarcastic sense of humour 😂

[@slomofs]

James, what are your thoughts on “Unrealised Gains Tax”? Right now the Government have to wait until a landlord sells their house before they can charge Capital Gains Tax, my understanding is that Unrealised Gains Tax is something the government are considering and this would then mean landlords would have to pay tax on an annual basis on their unrealised gains whilst they’re not selling, so this way the government get their capital gains tax without the landlord selling!!!!!

[@graemebarriball303]

They are taxing air. The price if assets move up and down, there is no actual profit until the asset is sold. Take share prices, one minute a share is worth £3 when you only paid £1.50 then suddenly the price swings and the price drops to £1. The profit is made by timing the buy and sell right. Taxing notional profits is just stealing something that hasn’t yet me made.

[@propertyaccelerator]

Ive seen they are talking about this in USA currently. I dont think it could work, what happens if you tax someone then the market crashes a few months laster do you refund them?

[@andrewh2u]

Moved back into each of my properties and project managed lipstick renovations for a year then sold out. Four more to go and I am out baby.... heading back to my overseas idyll and managing paper investments.

[@propertyaccelerator]

👍

[@edc1569]

Fantastic news!

[@propertyaccelerator]

Small landlords will be replaced with big landlords that will be much much worse.

[@dee591]

This very upsetting and not fair to landlords or renters.

[@propertyaccelerator]

👍

[@martin5504]

Banks are buying properties. It's part of the plan.

[@propertyaccelerator]

👍

[@absaly]

banks like reposessed properties at dirt cheap prices to sell off at profit

[@ChunkyMonkey78]

Yes it's interesting, I said that to my Brother in law last night who works as an electrician, and he agreed with me and he sees what's going on, on the ground.

[@stephenlaw9886]

I am a tenant affected. Had my s21 3 months ago. I don’t blame my landlord one bit. If I was him I would do the same.

[@propertyaccelerator]

It will be more common sadly.

[@maclal5411]

wanna quit but cannot sell - no buyers in market

[@propertyaccelerator]

👍

[@tomsmith7913]

Try The Property Buying Company, they are great with property portfolios / single properties. Have option to sell directly to them BMV, or direct to buyer for closer to market value

[@Thereishope664]

Who on earth will buy properties to flip. You pay 3% extra stamp duty to buy and it looks like you'll be paying 40% CGT to sell. Also the CGT allowance is now a paltry £3000. You will in fact be giving the government a ridiculous amount. Plus of course if you buy at auction they charge eye watering fees.

[@propertyaccelerator]

Also could be some people who in currently doing a flip, if they dont get a move on they could get in trouble.

[@johnporcella2375]

No. If your business is flipping properties, then you are trading, so Income Tax is payable and not CGT.

[@andredeoliveira4125]

The UK has long been dominated by landlords, which has contributed to significant challenges in the housing market. The abundance of landlords drives up property prices, making homeownership increasingly unattainable for those on average salaries. However, with housing prices now starting to fall, there is hope that renters looking to buy may finally have a chance to afford a home.⚠️✅

[@propertyaccelerator]

👍

[@jonathanjonathan7386]

house prices have started to rise again,

[@nutrition182]

I feel sorry for renters, however, it's not easy for landlords either due to all the costs, high mortgage increases and many others upkeep costs, insurances, safety certificates.

[@bobbyboyderecords]

Everyone forgets about EPCs! huge costs to fix that shit in an old property. Cheap old rentals with the poorer people in them will not be worth the upgrade and will also be sold off.

[@propertyaccelerator]

True

[@ph5056]

To make it viable you would have to own your property outright and even then I'm not sure the profit would equal the hassle

[@propertyaccelerator]

👍

[@kickstartedwards6916]

Once if become obvious that the number of properties available for rent has reduced significantly I suspect the government will forbid landlords from selling unless they can show no local demand - personally I think this is the last time to get out of this market

[@propertyaccelerator]

The data is already there not sure why they are not acting on it.

[@pataleno]

Got two properties. Hoping my tenants leave so I can sell. Don’t want to kick them out as they are good tenants but as soon as they do they’re getting sold.

[@propertyaccelerator]

🙏

[@hoomee119]

Good The more properties up for sale means a glut and prices will fall.

[@propertyaccelerator]

👍

[@Nicckkii]

Ive been a tenant for 17yrs and my landlord is selling. Im every landlords dream.

[@propertyaccelerator]

Yeah that is such a shame, sadly lots of good tenants will lose their homes due to these policies.

[@HunkumSpunkum]

As a former renter, I don't blame landlords one bit for getting the hell out....

[@propertyaccelerator]

👍

[@karenbarker9474]

I am a new landlord buying an off plan apartment in Manchester . Completing soon but I already want to sell🙄😬

[@propertyaccelerator]

👍

[@grolfe3210]

Great info thanks. I agree with your reasons but would add two things- That landlords have the big dilemma of not wanting to sit with an empty house. Over last 4 years since covid, it has not been a great market for sellers. It still is not great but what is being put on the market will hopefully find a buyer. Homeowners are not selling as it is too expensive to trade up with interest rates so there is a gap for landlords to feed the demand. With most renters being smaller houses, that will be for new buyers or quite a few with people trading down. Secondly, if they have a high percent of borrowing then they are currently stuffed. I have a £100k interest only mortgage and the interest went from £130 a month to £600 a month. I still make a profit but not much. The house is worth £200k so i could well have much higher borrowing on it that far exceeds the rent.

[@propertyaccelerator]

Great points.

[@Wishing_you_peace]

Good. The housing market has squeezed the public dry. This will drive prices down and then rents down.

[@propertyaccelerator]

Rents will go through the roof if you reduce stock.

[@RobertMunro]

Yep had enough.. Wanna quit!

[@propertyaccelerator]

👍

[@philiplythgoe7173]

Landlords could make more money doing youtube videos,

[@goglossy3939]

😂

[@propertyaccelerator]

True I earn over £1 million a month from this channel, easy money!

[@philiplythgoe7173]

@@propertyaccelerator To be honest it's a bit more than l earn. Well done...

[@Noor-kp1yb]

I have a few questions.I rented my house from 2020 through private let with landlord.LL never registered my deposit. LL asked agent to manage property for 6 months as LL lives abroad. They have fixed nothing in this time as they have said LL is not financially able ! I’m paying my rent in full each month. Window handles half of them in the house we can’t open / extractor fan on kitchen not working / mold ok my daughters bedroom! Been Sent section 21 six month tenancy ends in Nov but I’ve been told this is void as my deposit wasn’t deposited when I first moved in ???

[@propertyaccelerator]

Sounds like you have a bad situation sorry to hear that. I would speak to www.citizensadvice.org.uk/

[@Noor-kp1yb]

Thanks LL fell behind in mortgage payments beginning of this year.And it’s happened again recently two months behind I feel section 21 either to get someone else in for higher rate of rent or selling.Yes have an appointment with a legal tenancy rep on Monday

[@bobbyboyderecords]

section 24 is only a problem with mortgaged costs not all the other stuff isn't it??

[@propertyaccelerator]

👍

[@ianjinks4048]

Yup. Selling my two properties, bought 15 years ago, no mortgage, would loose over 100k when they link capital gains to income tax. If they also bring in a flat rate tax on unearned income everyone is screwed… Labour are creating the biggest housing mess ever

[@propertyaccelerator]

👍

[@ElliotsM3]

I recently bought to rent it but now I will be selling it! Better returns in the market

[@propertyaccelerator]

🙏

[@luvadealme]

My Sis in law is basically never planning to sell hers (BTL flats) so she won't pay CGT, can someone explain this strategy to me, so I can explain the flaw in her plan back to her. Oh and yep, her flats are her retirement plan as she doesn't have a pension (doesn't trust the stock market apparently....)

[@propertyaccelerator]

I think she is doing the right thing, she has an income from them that is predictable. Shares can go to zero and stock markets drop much quicker than houses. If she sells she will pay around 28% in tax so no point.

[@pmtilbury6596]

A lot of landlords are getting too old for it - there are a lot over retirement age and now many young people starting off due to the high prices

[@mrfoameruk]

I just turned 60. I decided this year was the year to turn things around to give me a more stress-free life. Selling a flat in Croydon was the no1 thing that made the most difference. It was a cloud over my whole life.

[@propertyaccelerator]

🙏

[@BobCat007]

good stats ,,, but i think there are enough houses but not in desirable counties and locations ,,,, i don't many people moving to hartlepool and blackpool

[@propertyaccelerator]

👍

[@johnporcella2375]

Correction! Landlords do NOT pay Income Tax on rental turnover! Property expenses, bar finance interest paid, ARE allowable!! So, Income Tax is paid after all the usual expenses, as before, with the exception of mortgage interest. As for this, a 20% fixed tax credit is given back by HMRC. What does this mean? In effect, for landlords who are Basic Rate Income Tax payers, NO nett difference! For those who pay 40£%or 45% Income Tax rates, their interest payments are restricted to that fixed 20% tax refund.

[@Magic-Smoke]

Yup! My 60 are on the market. Fed up being a pariah! Your video is a good synopsis of what I told prospective MPs of both parties before the election. They will get my money in tax for sure - but they will get it only once (CGT). After that, they can pay to house all the families that will inevitably have to move. Idealism rules over pragmatism.

[@propertyaccelerator]

👍

[@harryzero1566]

Interesting perspective, I have relatives in their thirties with children in rental property, already past the notice time to quit, but they pay the rent on time and the agent takes it. This family have all but given up hope of finding affordable housing in the private sector and 'hoping' that eviction will prioritise them for local authority accommodation. However I dont think eviction will ever occur, and if a no fault eviction law is passed, they never will. There is a draw back, despite paying the rent on time if anything goes wrong in the property and the landlord isnt making a profit, who pays to fix it? Also, if the landlord is making a financial loss, how can they increase the rent? By increasing the rent, would be indicative of changing the status from a fixed period contract to a rolling monthly contract. The only solution, as I see it, is for the property to be sold on to another landlord with sitting tennants, then the problem of extracting a higher rent remains. Perhaps a response from the content provider would be useful to see another perspective

[@propertyaccelerator]

🙏

[@nigelcheeseman3369]

James, where are your statistics on landlords leaving the sector coming from?

[@propertyaccelerator]

There was lots of data in Reuters and other places. Its reported on very frequently.

[@RayleighBoy]

i've got 2 years left on my mortgage deal (only 1 flat) so i'm going to see what the new rules are for giving notice going forward and sell up as dounds like too much risk in the future

[@propertyaccelerator]

👍

[@tanseypenfold2109]

Wont it be good to have local housing for local people tho. Perhaps councils could buy the stock. I've never agreed with people owning more than 2 houses when there so many people needing somewhere to live. Just saying from point of view of someone who never have enough money to own anything but worked

[@propertyaccelerator]

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[@epijournal8423]

So house prices will go down now ?

[@propertyaccelerator]

Possible yes

[@lulabellegnostic8402]

When private landlords sell up, those that buy the property ( if it goes back into the rental market) pay no tax. It’s either overseas investors or charities. So the taxpayer gets hit yet again.

[@propertyaccelerator]

👍

[@Ninja-wn8pr]

being a landlord is still good if you havent got a mortagage on the property. you would not get those returns anywhere else

[@propertyaccelerator]

Agreed

[@nigelcheeseman3369]

If you are breaking even or losing money, you are doing something wrong. Perhaps you bought badly, or you’re managing your property badly. Did you get the right tenants? All your repair costs can be offset against income, contrary to what some have said.

[@propertyaccelerator]

In certain areas I agree, in the South it can be tough as there are limits on how high rent can go. (Market value). With the higher rates it can be tough to get the deals to work. Up North no real problems.

[@The_Unintelligent_Speculator]

Opportunity.

[@propertyaccelerator]

Agreed.

[@geroldluers4557]

I M a landlord. Had 3 properties but I shall leave the market. At the moment quite a few properties have come on the market ( Landlords selling) so I shall wait till the market calms down and then I' ll leave, probably loosing money to the government. ⁷ The government will regrett this

[@propertyaccelerator]

🙏

[@stevenmackay3342]

I can see that Landlords have ot tough. But try being a single father...im pretty sure Government are engineering statutory policy so they can basically "employ" single mothers and have them claim Paternity tax (as i call it). It will be Housing associations that buy alot of the houses that the private sector sell then tge fastest way to get one if you have children (or specifically child benefits) is to simply move as far away from your ex as possible, give up work and become homeless - throw in some allegations too...the government will give you a house "no questions asked". Its unspeakably cruel for children.

[@propertyaccelerator]

❤

[@lordsummerisle852]

This is a war of attraction: The longer you can stay in the game, the better you will do.

[@propertyaccelerator]

I agree, I am not leaving.

[@propertyaccelerator]

Agreed

[@marissakeynes2532]

Or a war of attrition and guess who's gonna win?

[@lordsummerisle852]

@@marissakeynes2532 whoever can adapt.... And banks. Definitely banks

[@castlequay2327]

what about renting to students?

[@propertyaccelerator]

That does work well

[@andrewwiltshire6569]

Being a BTL landlord in your own name only really works if there is little or no legislation. You should be able to claim mortgage payments as an expense as was brought up by Rees Mogg . However I am all for giving EPC inspectors more powers to avoid overcrowding. Although I've noticed families with a couple and one or two children are living in one bedroom apartments to save money. Recently I got ten per cent off a cheap flat I was going to buy for BTL purposes close to completion I was told the roof needs work.No details forthcoming from vendor or discount so now considering removing my offer.This property has been on market to or almost two years and they took £10k off original selling price before I made my offer.The estate agent reckons they will auction the property if I pull out. The saving to me will be £1200 of legal fees against £5k of work and all the hassle caused by new legislation.

[@propertyaccelerator]

👍

[@samer1900]

The main problem is the mobility… especially among the high skills workers… I am a doctor… I got really good offer on other city… i simply couldnt accept the offer because moving is just a nightmare these days

[@propertyaccelerator]

🙏

[@NogertMoyo]

What do you mean doc. Do you mean you already got a house but if you take the new offer you will face a new buying vs renting headache?

[@maxtelero4904]

Both mine for sale. My friends got his. My other friend getting rid also

[@propertyaccelerator]

👍

[@judithparker4608]

In which....Metropolitan County....does your Borough Belong ?

[@propertyaccelerator]

I am in Surrey

[@ladyjopov67]

Selling up a big house. It's not going to a family as the only interested parties are investors who are changing it to hmo for prob homeless boat people. We can't dictate who buys and every single viewer has been investors as in a prime room rental hot-spot . It's our ex family home rented to our adult children but our family cannot afford to be hammered by huge Cgt tax rises.

[@propertyaccelerator]

Thats sad sorry to hear this.

[@cherryrotella3714]

If landlords are selling up and there are no council houses being built that’s a real worry 😦

[@propertyaccelerator]

Its much harder to find a rental property than it was 4 years ago.

[@crispyduck1706]

Have you seen what Labour have done in Wales -300% council tax for second homes - this is going to be catastrophic for house prices they will halve from here

[@propertyaccelerator]

👍

[@michaelsnelson2748]

Who will buy these 2nd Homes? People who are active in retirement and want to downsize with some money ? Now what policy will then be needed to enable local people to have the right to buy in the place they were born? ……

[@Tomtomlost]

Time to earn proper money as a business man not taking advantage of tenants It’s the greedy landlord who’s making it very hard and impossible for first time buyers to get on the ladder

[@davidcalvert-smith4633]

First time buyers have a massive advantage over landlords. Much smaller deposits are required, as little as 5%!

[@propertyaccelerator]

Its the fact we dont build enough properties that cause problems in buying. 30% of landlords quite and nobody is buying their properties. The problem is rents are going up faster than ever due to lack of rental stock.

[@jonathanjonathan7386]

1.2 million foreigners arriving here in just 12 months under the tories probably have a bit more to do with than landlords...

[@seansmith445]

@@propertyacceleratorThe problem is not that we’re not building enough houses it’s that we are bringing too many people into to the country.

[@Creator250]

Good

[@propertyaccelerator]

👍

[@HotelEuropaBasak]

Yes, i start to sale my properties and may be will become en renter in south east Asia :)The rents are so low now compared with the price of properties and renters are more and more bad too.

[@propertyaccelerator]

👍

[@paulcoates3860]

Why don't the landlord haters, who rent ,buy the houses landlords are selling😂, 😮no but I'd have to save 10% deposit , credit check and maintenance..😂

[@propertyaccelerator]

Exactly, I knew this video would get some hate before I uploaded.

[@ChunkyMonkey78]

Mate, a lot of working people can't literally save up the deposit any more, nor afford the value of the property.

[@coreymcmahon5144]

To be honest, I have changed predictions over the short term. I have done very well with predictions over the last ten years and surprisingly never got into property! Although I see great potential in first time fixer upper higher priced property.

[@propertyaccelerator]

👍

[@maureenharris8255]

Greed could be the answer! If they can't accept their mortgages being paid by renters as payment enough... i rent privately because i have no choice, I am a widow and not entitled to a council property... my landlord, who took over 2 years ago and raised my rent £50/m after 18 months. He has not done any repairs DESPITE knowing about them when he took over... rubbish... no fault evictions do not cover none payment of rent . Only bad landlords are leaving

[@propertyaccelerator]

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[@walkingmadman]

Make mortgage interest tax deductable again. This will increase landlord retention and new landlords coming to the market.

[@propertyaccelerator]

True

[@oaip1878]

Landlords in uk are greedy as hell, I'm renting houses here for nearly last 20 years and Landlords keep raising rents but almost all houses i have been living never been renovated for 20 years, houses looked like shit but they were called 2 grand per month scumbags

[@propertyaccelerator]

😬

[@alexcassel63]

Yeah you dont know anything about servicing a mortgage at high interest rates

[@oaip1878]

@@alexcassel63 high interest rates are only for last few years, before that interest rates were around 2 percent so don't try to fool me

[@alexcassel63]

@@oaip1878 the point is they drive everything else

[@grantbeerling4396]

So productive taxes, including NI, are between 22% and 33%, and unearned income for Capital Gains is 18% to 28%. Nobody should pay less tax to own capital. Equal is fair. But also, to be fair, this is the present law. As Churchill said, I don't blame the landlord for exploiting the tenant; they are working within the law; I blame the system. We need to change the system (1909).

[@graemejones9707]

Most of them had already paid income tax on the money they used to invest. Why should people be penalised twice for choosing to invest their money? It is the reckless behaviour of the Benidorm, beer, bingo and burgers brigade that ought to be punished. Less subsisdies for freeloaders.

[@davidcalvert-smith4633]

There is no risk to deploy labour while capital can be lost. Also, capital is subject to inflation, you could make a nominal return but loss in real terms. Also, capital can just as easily be deployed into other industries or countries.

[@propertyaccelerator]

👍

[@youtubeman5033]

Land lords are selling up and getting out, I’m seeing it where I live there’s some bargains out there at the mo,

[@propertyaccelerator]

👍

[@theq-1]

I own a large property management company and we've been offloading for the last year. Teach both tories and socialists a lesson on economics 😂

[@propertyaccelerator]

👍

[@mrfoameruk]

Can people please confirm that you are charged tax on the full income turnover (before outgoings like renting agents, repairs etc) and not just the profit? I still cant believe this is true.

[@graemebarriball303]

It is true. Interest in not tax deductible, you are given a small fixed allowance to offset. It was ok when rates were very low but now higher rate tax payers are being taxed on losses.

[@discostu2]

Correct, if the property is in your personal name but, you can offset interest etc if the property is wrapped in a ltd company

[@hustlinmagic]

The only thing you cannot deduct if the property is in your personal name is the interest on your mortgage payment. Repairs and fees are still deductible.

[@user-gz6tx6yp3v]

Mortgage interest if in your name. LTD company that is still deducted. This was designed to stop people draining tax free income from raising debt on the asset so at least in a company you would be charged for extracting as a dividend from the company. In America you can still buy and pull out equity if in your own name without penalty.

[@paulmartin6249]

Landlords sell up, Labour will absolutely rinse you if you don't. They need the cash to keep the unions happy.

[@propertyaccelerator]

👍

[@Bereadyalways123]

I sold my 2 bed rental flat years ago, I could see the writing on the wall….thank god I did…

[@propertyaccelerator]

👍

[@rikardsaje]

Regarding section 24 do you still not get the 20% interest relief on mortgage interest?

[@allykhan8594]

@@rikardsaje if you're paying interest on a residential property you will.pay tax on 80% of your rental income if you do Not own it under a limited company, less any allowances.

[@propertyaccelerator]

You do but its close enough to pay 100% tax, its enough to make a huge amount of landlords quit.

[@JT_2024-c8j]

@@propertyaccelerator which is right, I can’t take out a personal loan to buy shares and use the interest payments on the loan to offset my personal tax burden.