The extent of which landlords are exiting the buy-to-let market has been laid bare by new research from Landlord Action, part of the Hamilton Fraser Group.
LandlordBuyer has seen the results of a new survey carried out by the housing law specialist. Of those landlords questioned, 26% who had issued a Section 21‘no fault’ eviction notice to their tenants in the last 12 months had done so because they wanted to sell their property.
Landlords also cited rent arrears (31%), anti-social behaviour (22%) and reclaiming the property to live in themselves (2%) as other reasons they’d decided to serve a Section 21 notice.
More sales in the future
With the Fairer Private Rented Sector White Paper in circulation, which spells the end of Section 21s in the near future, we expect many other landlords to follow suit before this method of regaining property disappears forever. In fact, 28% of landlords questioned about their future intentions said they would issue a Section 21 notice before the Renters’ Reform Bill took effect. A further 28% were still undecided on the matter of issuing a Section 21 in the coming 12 to 18 months.
The end of ‘no fault’ evictions and no clear replacement for the process is of concern among today’s landlords, especially in volatile financial times. Those taking part in the Landlord Action survey were worried about how easily they would be able to regain possession of their property in the future. Of those hoping to exit the market, 42% said they would be selling in the next 12 to 18 months to avoid future uncertainty on the matter.
A closing window before Section 21s are banned
LandlordBuyer anticipates that many landlords who want to sell their property to free equity or leave an increasingly complex market will be stuck as soon as Section 21 notices are banned, with tenants’ rights to stay in a property strengthening.
Many will be left with no other alternative than to wait for tenants to give notice before they can regain vacant possession, especially as it remains unclear whether regaining a buy-to-let to sell will constitute a valid reason to give notice to tenants in the future.
Sell now with tenants in situ
LandlordBuyer gives landlords an alternative to the Section 21 route, by offering to buy tenanted properties for cash, without needing to evict renters. The tenants can be on assured shorthold tenancies or even be protected sitting tenants – LandlordBuyer will purchase with any type of renters in place.
Those living in the property will be undisturbed, with LandlordBuyer seamlessly taking over the tenancy and the property’s management. A sale to us also keeps rental stock in the rental sector – a vital aspect when we are facing a serious shortage of available buy-to-let properties.
Sell with tenants, even after Section 21s are banned
Unlike the Government and the open market, we also offer landlords certainty. As well as our cash offer, we can exchange on the property within seven working days, if required. Even if your plan to sell a property after Section 21 evictions are abolished, LandlordBuyer will purchase your buy-to-let, guaranteeing you a sale, cash in the bank and a fuss-free exit from the private rental market.
If you’d like to know more about selling a tenanted property to LandlordBuyer – without the need to evict tenants or gamble on the open market – you may like to watch one of our explainer videos. Alternatively, contact our team by telephone or email and we can start your sale today with a no-obligation valuation and immediate cash offer.