The Association of Residential Lettings Agents (ARLA) latest quarterly research found that 59% of respondents reported that almost one in five (17%) landlords are expected to sell one or all of their properties in the next 12 months. This figure is the highest since Q1 2008, when the figure stood at 18%.
Additionally, there is a decline in the numbers of ‘reluctant landlords’ – those who had to rent out their property because it could not be sold. These landlords are now looking to sell and properties are starting to come onto the market, just as it starts to cool.
Following a headline grabbing period of house price inflation, the Rightmove House Price Index for June reveals a largely static market:
- New seller asking prices at virtual standstill, up by just 0.1% (+£272) this month
- More regions fall than rise, with London’s 0.5% drop a combination of buyer reluctance and surge of over 20% more sellers rushing to market this month
- Early signs of belated return to balance between supply and demand
It stands to reason that, as more threats appear, "reluctant" or "accidental" landlords may decide that the time has come to sell.
Many landlords are also finding that the true cost of being a landlord is significantly more than they imagined!
Figures from the latest Rent Check report, Generation Landlord, produced by Allsop LLP and BDRC Continental, reveal that, on average, landlords outside of London take home £4,493 per annum per property, losing 26% of their headline rent to expenses incurred in the running and managing of their properties.
Combine this with the threat of interest rate rises and the fact that at a 7% interest rate at 75% LTV (loan to value) means a landlord would have to be achieving 6.6% gross yield just to break even, many landlords want to exit buy to let over the coming months.
Another threat to landlords is mandatory licensing. More and more councils around the U.K. are making landlords buy a year long licence - the typical licence fee being around £500.00 per annum. This is just more onerous legislation for landlords who already have to adhere to over 70 Government regulations and statutes in order to be compliant.
When a landlord makes a decision to sell an investment property, it is very often because there is a degree of hassle associated with it. For instance, there may be rent arrears, a void period, or the property has been damaged by a delinquent tenant.
A long and drawn out sales process only adds to the angst and worry.
This is where Open Property Group can step in and solve the problem very quickly and end the hassle with a guaranteed cash lump sum in the bank on the date of the landlord's choice.
We will offer typically 85% of the market value of a property. This is a more attractive proposition than it might appear at first glance.
Our solution means:
> No estate agent fees (typically 2% plus VAT).
> No viewings.
> We buy "as seen" and repair and maintenance issues do not phase us!
> No void period. We buy tenanted properties across England and Wales.
> No worries and no hassle.
When all of the above is taken into account, our offer can be more than the 15% discount we are typically looking for.
We can also buy multiple properties and portfolios, giving a retiring landlord a clear date of when his property career can have a line drawn under it.
The Directors of Open Property Group comment:
"As we are immersed in property buying and selling, we regularly come across landlords for whom the "BTL dream" has become more of a BTL nightmare. Many amateur landlords under-estimated the true costs involved in being a landlord and find that tenant management is a lot more hassle than they envisaged.
In any form of business, it is best to understand when it is failing, rather than throwing good money after bad.
Our service offers a quick, clean, hassle free exit for landlords who want to exit their BTL investments. One call to us could solve all your problems and we are keen to work with landlords to find a solution that works for them and us.
Our property buying group will purchase any property, regardless of the condition or location throughout England and Wales. We make immediate cash offers for property and the completion date can be structured to the homeowner's timetable".
Open Property Group is a new name in the "quick sale of houses" sector with the mission to raise standards and improve customer experience. Give us a call on 0800 990 3939 to receive a no-nonsense cash offer for your property or send us an email at firstname.lastname@example.org
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