Landlords with portfolios of 20 properties or more are making up the bulk of enquiries about selling to the Landlord Sales Agency.
Despite reports that smaller landlords with one or two properties will be hardest hit by current market conditions, the firm has one landlord client with 50 houses that he can’t refinance because no lenders will lend, and another with 40 properties and a £6,000 per month mortgage deficit. Their only option is to sell.
Another landlord recently sold her 23-strong portfolio in Warrington through the agency, reporting that with a total value of £2.7 million, rising costs and interest rates means she is subsidising others to live in her properties.
Although the Landlord Sales Agency is averaging 240 enquiries a month from landlords, 75% of their agreed sales over the last year have been to other landlords who are keeping the existing tenants.
Rent rises
MD David Coughlin (pictured) says there is such a critical need for rental properties in this country, that he and his team are working with landlords to try and keep properties in the PRS by selling tenanted properties.
The firm has helped tenants pay their current rents, paid off arrears, paid for tenants to relocate and in some cases, even paid tenants’ rent in advance for the next landlord who takes on the property. For more challenging cases, they have built relationships with local councils who can support tenants’ rent payments, clear outstanding funds and even pay off legal costs.
Coughlin adds: “Tenants are having to accept rent rises, and in 50% of the sales we have agreed, the tenants have opted to stay with a higher rent because they know fierce competition for rental properties could see them paying even more elsewhere.”
Read more about rent rises.
