Why UK Landlords Are leaving The Market

[@Joeysantoro]

Great docu/video packed with facts. Thank you.

[@StreetsOfLondonCity]

Glad it was helpful!

[@schrodingerscat1863]

For me the risks vs returns of property rental became too great with the proposed changes so I started selling up as soon as they started talking about this. Managed to sell my last property a couple of months ago, so that is now 7 less properties on the rental market with the tenants having to find somewhere else essentially doubling the loss to the rental sector for each property sold. This government have created utter chaos with everything they have touched so far.

[@CarlTSpeak]

The 7 properties if they left the rental market didn't disappear from existence, they may well have been purchased by folks currently renting leaving the end result on supply and demand neutral.

[@StreetsOfLondonCity]

By selling you receive money but may have lost long term wealth by not holding assets unless you re-invest into other asset class. What do you think..?

[@schrodingerscat1863]

@@StreetsOfLondonCity I don't really care too much as I have more than enough money to live comfortably for the rest of my life. Never hold cash always put spare money into something that preserves wealth like gold or silver. Looking to sell up everything now anyway and leave the UK, the country is a mess.

[@frmcf]

@@schrodingerscat1863 It seems like when you say "the country is a mess", that means something like "I'm no longer to continue to get wealthier without putting in work or even taking risk". That is surely an example of government policy working as intended, isn't it?

[@frmcf]

What a shame that those seven houses you sold are now sitting empty.

[@MrRawMonkey]

People have short memories regarding historical interest rates so I have no sympathy. Also they are taking houses out of the market that could be sold to home owners to live in with a mortgage.

[@StreetsOfLondonCity]

We have seen low interest rates for over a decade. The main problem is new buy to let investors who do n to understand the concept of rental yields and have been caught out with the increase rates.. Thats just one reason..!

[@AndiWard]

Buy to let should never have been allowed or encouraged.

[@meggriffin4802]

Why though

[@AndiWard]

@@meggriffin4802 Because they drove many young people out of the housing market and forced prices to increase. It would be immoral for me to use the wealth I generated over years of work to outbid young people on the only houses they can afford when I already own a house. It's made even worse in the fact, by forcing young people out of homeownership, they create a market for the houses they bought.

[@Finderskeepers.]

Its existed since the 1st property was rented and if you look at the history you will see in the past the tenants came with the land, hence the highland clearances in Scotland when it was decided sheep were more profitable than tenants. Long before buy to let came there has been a need for rental properties. Buy to let is just a label for a mortgage type that has existed for centuries and was primarily the preserve of the elites like the King and the Duke of Westminster. It was encouraged to remove the need for the taxpayer/state to provide rental properties just like council housing has been replaced with housing assoc. The more supply the lower the rent and its the reverse effect that is now increasing rents. In 2022 10% of residential properties were bought by investors but there are no stats available for how many sold to see the net effect of investors. Lower interest rates have a significantly larger effect on increasing house prices as people can afford to borrow more and so pay more. Should interest rates be increased because thats whats really increased house prices causing the current barrier for young people?

[@schrodingerscat1863]

Where would those who can't or don't want to buy live then. Property is an asset just like any other, the reason property is so expensive has nothing to do with buy to let, that is just a symptom of the problem. The real problem is huge population increase outstripping supply for the last 2 decades.

[@AndiWard]

@@schrodingerscat1863 In properties built to rent out. So instead of driving young people out of the homeownership, the wealthy should have used their wealth to build houses for rental.

[@ExpatAjazInItaly]

Hosting number on tenants and what’s I’m seeing and hearing is concerning to say the least❗️

[@CarlTSpeak]

Fewer rental properties on the market but whether the lower supply will be offset by lower demand as people leave the rental market as owner-occupiers remains to be seen.

[@StreetsOfLondonCity]

Getting on to the property ladder becomes harder and harder for 1st time buyers. Increased interest rates crushed the affordability hopes of many unfortunately..

[@Mallarkey]

If landlords leave the market, how does that mean fewer places available? Maybe fewer for rent, but equally more for purchase. If so many are "getting out" all at once,then supply of property for sale outstrips demand, and they'll have to sell at reduced prices. If you are suggesting landlords are withdrawing from the rental market but NOT selling up, keeping houses empty, that's sheer madness on their part, as mortgage costs are up and their asset will be losing value as I've mentioned.

[@dawnfoster6530]

I only rent to people I personally know so, I can pick and choose and be more discriminating to protect myself.

[@Mallarkey]

@@dawnfoster6530 and that's fine. But if regulations and taxes mean it's no longer worthwhile, presumably you'd sell up and get the value, rather than leave it effectively boarded up, costing you money (and likely losing value as prices fall due to number of other landlords selling up). And if you sold, then your erstwhile renter could buy; rents have always been more than mortgage repayments, so they win too.

[@bepitan]

so if interest rates are increasing then it's going against a fall in base rates that are occuring right now ..

[@imranl8742]

Love this, very interesting!

[@StreetsOfLondonCity]

Jzk

[@davidstelzer6162]

Informative. Thanks for sharing.

[@StreetsOfLondonCity]

Jzk David..

[@shinkencarlos]

Useful summary. Thanks

[@JamesKerr-z4o]

Great video and it highlights many issues, but what do you suggest, sell up and pay the capital gains tax, and then invest the money is stocks and pay capital gains on the income from this also? I suspect major institutions will buy up desirable modern properties that at put up for sale and those selling older properties will have to wait for new home buyers. It feels like damned if you do damned if you don’t, but I’m no tax expert.

[@StreetsOfLondonCity]

There are 2 types of landlords A) 5% yielders who are new landlords and + B) 10% yielders who are old school landlords. A are the ones hit with bad purchases where they bought high, offer low rental yields ++ usually incur service charge payable to a developer or freeholder.. My advise try and hold your asset as it represents your wealth and will grow..

[@kyrusinek]

Good? Rent was always supposed to be cheaper than a mortgage but its usually a couple 100 more a month! People who had a good credit line with the banks got mortgages and made others pay for it plus profit. Meanwhile those same people "who had evidence they could pay a mortgage plus more" They were told they couldn't get a loan for a mortgage. Not once did you mention that the average worker after tax was getting 1.4-1.5k a month. I don't care what the average says its skewed massively. I saw the rent on a home I was renting go from £380 a month to £800. The house didn't improve, and the mortgage didn't go higher.

[@StreetsOfLondonCity]

Good points there is only so much I can cover but will do a video on average 1.4 to 1.5k a month at some point too..

[@kyrusinek]

@@StreetsOfLondonCity I will wait for it and watch. I am not against landlords I am just against unfairness and being ripped off. I am curious to see how anyone can justify renting out a home that's higher than the mortgage or 3/4 of a person's wage.

[@MarcLiron]

Who would be a landlord these days???

[@StreetsOfLondonCity]

It's tough for newbies the old school no debt still in the game for now..!!

[@vorno102]

Screw Landlords. We have a housing crisis because of them.

[@StreetsOfLondonCity]

We have a housing crises because of the rich. the question is who are the rich..? Landlords are usually middle class who simply try and secure wealth and income for financial freedom through property..

[@mrcynicalgooner]

@@StreetsOfLondonCity That's just another way of saying the middle class use property to secure wealth at the direct expense of the working class. Seriously, screw landlords. Only good thing Labour have done so far

[@vorno102]

@@StreetsOfLondonCity And screwing those below them. I'd happily see a ban on owning more than 1 property. Leave letting up to the councils like it used to be before Thatcher destroyed this country.

[@andrewjack31]

40% capital gains tax is one of the most disgusting things I've ever heard. Remind me again why we need central government?

[@StreetsOfLondonCity]

Economics is misunderstood by many indeed..!

[@namers73brsdxb8]

Very insightful

[@StreetsOfLondonCity]

Nice to know..

[@cotavatar190]

[The world's tinest violin playing in the backgroud]

[@saimamuzaffar8702]

I did not know about the increase in CGT I hope they see sense!

[@StreetsOfLondonCity]

Gov't need to fill in financial deficits which mean increased tax is inevitable, let's wait and see..

[@sarmsforsale]

So everyone will try to remortgage instead of selling ?

[@schrodingerscat1863]

Government are throwing money around like confetti so they have to increase taxes, this is what socialist governments always do.

[@mrjohncharlesbrown]

I own 5 paid cash all bought in the dips so I don't worry

[@jasvindersuri587]

just a matter of time 1984 senario live in a room like a mouse do you excercise bike to get credit to get food from vending m/cs in social meet up zone in complexs , no car no going out to work all remote might be all we are good for is BAA and being a battery for AI its coming quicker than people think