"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"
- Holly Surplice - Landwood Group
In the past six months, Landwood Group has revealed a 150% surge in receiver appointments for buy-to-let portfolios. Perhaps not coincidentally, the latest market reports show large increases in rents over the last twelve months across the UK as demand for rental properties continues to grow.
A key driver of this surge in receiverships is a perfect storm of increased regulatory pressures and tax burdens, compelling many landlords to exit their investments due to a looming insolvency risk.
Holly Surplice, Director at Landwood Group said: “Recent legislative shifts, fluctuating interest rates and rising living costs have 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. 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.
"A lack of maintenance is not ideal for a property's curb 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.
“Our online auction service offers a lifeline for landlords who wish to realise the best returns on their properties.”
