Older buy-to-let (BTL) landlords are selling up in large numbers, new analysis suggests1, leaving a void when they ‘retire’ from the business.
Ageing population
The median age of individual landlords was 58 in 2021, according to the latest English Private Landlord Survey, significantly older than the general population. In contrast, only 15% were under the age of 45.
Around 140,000 landlords left BTL behind last year, the analysis shows, close to three quarters of all such property sales. The figure could keep rising over the coming years, with around 96,000 landlords across the UK due to turn 65 every year.
Selling up
The recent surge in selling comes partly from a shifting landscape, with a flurry of unfavourable changes making life harder and profits lower for landlords. In the coming months and years, the new Renters Reform Bill, updated Energy Performance Certificate (EPC) requirements, as well as changes to landlord licensing, Making Tax Digital and Capital Gains Tax (CGT), look likely to have adverse effects on BTL landlords.
Higher mortgage rates are also dragging down profit margins, which is especially acute for newer investors, who are more likely to need to borrow to fund their purchases.
Here to help
This is undoubtedly a time of change for BTL landlords but good opportunities remain for patient investors. We’re here to help you make sense of it all and ensure your portfolio is well prepared for years to come.
1Hamptons, 2023
As a mortgage is secured against your home or property, it could be repossessed if you do not keep up mortgage repayments.
