Private landlords have reported drops in yield, as their costs rise.
According to the National Landlords Association, they have seen income fall by 20% between 2011 and the start of this year.
The NLA says that average property prices in that period have risen by over 40%, while average rents have gone up 14.5%.
CEO Richard Lambert said: “Providing good quality rented homes is a costly business and getting more costly by the year.
“Although it is popular to paint private landlords as greedy parasites, only interested in pushing rents as high as they can go, the fact that rents continue to track below inflation, and far behind house price inflation, illustrates that this is far from the case.
“Being a landlord in the UK remains a worthwhile, and potentially profitable endeavour, but it is not a means of turning a quick profit.”
Meanwhile one landlord, Corin Ashbee-Waugh, has written to the new housing minister, Christopher Pincher, quoting a story from EYE:
Dear Mr Pincher,
As our new Housing Minister, you need to look seriously at the mass exodus of landlords from the private rental sector. Fewer landlords means even fewer homes for those who can’t buy.
I am a small portfolio landlord (three rental properties in Surrey). The draconian taxation measures introduced over the last few years (under a Conservative government – 3% additional Stamp Duty and the removal of mortgage tax relief) is having a major negative impact on this sector. If you look at the news link, it is clear that landlords are selling up in droves. The consequence will be dramatic.
222,570 landlords have left the sector since 2017 due to tax and regulatory changes.
If you’re in this job for more than a few months and not just coasting until a better one comes along (which is what your predecessors seem to have done) it would be nice to see some real action to deal with this issue.
New rents on the up as number of private landlords falls to seven-year low in major exodus
Comments (6)
Poor landlords. Shall we giving a JustGiving page for them?
Not a bad letter until the snide last paragraph which undoes all the good work. Although Corin Ashbee-Waugh may feel aggrieved, as many of us do, this is not the best way to win the new Minister over.
So there is a new guy in the job with very little experience in housing. Like all these departments -there should be a panel of experts with experience to vote on these matters – [like the Bank of England has a panel of experts to vote on interest rates every month ] That way, there will be continuity / and decisions made by experts in the industry. Maybe we would’nt be in the mess then. In the meantime Pandora’s box has been opened- rents will rise / there will be a huge shortage of landlords / letting agencies shut down /councils will be overwhelmed / We can all see it coming, those who work in the industry….funnny that…..
What’s the point of writing to Christoper Pincher, who is apparently this month’s Housing Minister? Rather like buses, there’ll be another one along next month.
You’re right – doing nothing would probably be more productive
Abolition of s21 once landlords understand the full impact will push these figures much higher. Our political plonkers will work on the basis of bolting the gate once the horse has gone. Once they have caused the problem they will blame everyone else and have to take steps to resolve the damage they caused.