Rental properties in Rotherham have reduced by 368 from 2017 to 2021.

Property prices are at an all-time high responding to the pent-up demand from 2020/21, low stock and the desire for more living space.

Talking to a number of landlords they view this is as a suitable time to exit the BTL market and take some equity that the high sales figures generate.

You would think it would be of government concern about a shrinking PRS, but the reality is that being a landlord is becoming harder with increased legislation, the debate about the abolition of section 21, not to mention the inability to offset finance costs and all coupled with the perception that the landlord is always the Bad Guy!

When landlords sell, we offer the properties with a sitting tenant to our investor base but with the current increased prices, the extra 3% stamp duty that an investor would need to pay, make the yield calculation unattractive.

The net result is that properties are lost to the PRS which with reduced supply and high demand will drive rents higher but with inflation and the cost-of-living crisis there will become an unaffordability of significant increases in rents.

Not with standing this I always remind landlords that they need to increase rents on an annual basis in line with the price indexes so that it can go some way to make the yield calculation workable. 

Otherwise, there will be no interest to investors, tenants lose their home, and the landlord sells to the highest bidder.

Isn’t it about time that the government makes it attractive to be a landlord, the overall majority of whom provide decent quality housing?

Being a landlord needs to be worth their while, if not the PRS will be in decline and then what for the millions of tenants who rely on the PRS.

Appreciate any thoughts! Feel free to give me a call 07743 702739