A surge in buy to let landlords exiting the private rented sector (PRS) is being fuelled by an increase in receiver appointments, one leading auctioneer says.
Landwood Group says it has seen a 150% increase in receiver appointments for BTL portfolios in the past six months.
And there’s an increase in BTL landlords heading to the auctions in a bid to avoid insolvency as tax burdens and regulatory pressures increase.
That’s despite rising rents and tenant demand.
‘Unprofitable for buy to let landlords’
A director at Landwood Group, Holly Surplice, said: “Recent legislative shifts, fluctuating interest rates and rising living costs has not only made it unprofitable for buy to let landlords, it is also having a prolonged impact on the quality of the UK housing stock.
“Especially now, with delays to the Renters (Reform) Bill, landlords are left in limbo watching costs soar while they are unable to improve their portfolios.
“A significant portion of this declining stock stems from buy to let portfolios purchased in better times when prices were higher, and which haven’t fully recovered since.”
She adds: “Purchasing at peak prices, coupled with economic downturns, more regulation and increased costs due to tightening energy efficiency rules, has left landlords unable to maintain their investments and property quality.”
‘Non-compliant with health and safety regulations’
Ms Surplice continued: “A lack of maintenance is not ideal for a property’s kerb appeal and value; however, we are now seeing serious deterioration leading to many properties becoming uninhabitable and non-compliant with health and safety regulations.
“As a result, we’re seeing a rise in the number of landlords coming to us to auction their properties, as many are finding it too challenging to continue operating.
“We see cases ranging from sales of single houses to portfolios of more than 100 properties.”
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