Editor's note: This brief was summarised by The Property AI Team from a report by Property118. Read the original article for full details.
Landlord Sentiment Survey: Over 65% Plan to Sell or Exit PRS
More than 65% of respondents to Property118's latest landlord sentiment survey said they plan to sell one or more properties over the next three years or leave the sector completely. Some landlords are already doing so, according to the report.
For landlords who have decided they want to sell but have not yet started, the article poses a direct question: what are you waiting for? A better market, a quieter moment, or the tenant to leave may be valid reasons to wait. But the report suggests landlords who already know they want to release equity, reduce responsibilities or retire should check whether waiting is helping them get there or holding them back.
The decision is rarely simple. Higher rents can make keeping a property attractive, particularly where tenants are reliable and borrowing is low. However, the report notes that higher property income tax rates are due from April 2027 for landlords who own personally, alongside the risk of further interest rate rises. It suggests some landlords feel any extra rent coming in will simply be swallowed up by higher costs.
The report also highlights the administrative burden on landlords. Gas safety checks, electrical inspections, deposit paperwork, licensing and tax administration all need attention. Pegasus Insight reports that self-managing landlords already spend an average of 51 hours a month managing their properties. With the PRS database and Making Tax Digital adding to the workload, the report describes the feeling of dealing with one new requirement only to find another arriving behind it.
For landlords who are torn, the article suggests selling one or two properties could reduce borrowing, remove the most demanding rentals and release money to enjoy, while keeping the properties that still work for them.
On the question of waiting for a higher price, the report asks how much higher a price would need to be to justify another year's costs and responsibilities. More than half of respondents to the survey expect property values to stagnate or fall behind inflation over the next three years. That is an expectation rather than a forecast, but it challenges the assumption that holding on will necessarily leave landlords better off.
The buyer's position is also a factor. The Bank of England says higher energy prices are adding to inflation pressures, while mortgage rates and borrowing costs are already higher than before the conflict in the Middle East. If global events keep inflation higher and mortgage rates rise further, buyers' budgets could tighten again. Even a mortgage-free landlord can feel that through what a buyer can afford to offer. The report stresses this does not mean prices must fall. It means waiting carries a risk as well as a potential reward.
For landlords who want to sell but believe they cannot, the report points to the difficulty of selling without first getting vacant possession, losing the rent or unsettling a tenant. It cites the example of the owners of a tenanted flat in Camberwell who wanted to stop letting it and use the proceeds to reduce their own home mortgage, but whose tenants had a fixed-term agreement with substantial time remaining. The report states that Landlord Sales Agency explored the options and secured a buyer who would keep the tenants, then coordinated the tenancy information, rent arrangements and solicitors' enquiries to bring the sale through to completion.
Source: Property118