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Crunch time for PRS revealed as increasing numbers of 'pioneer' landlords retire

landlords selling buy to let morgages|tenant upstix landlords

Thousands of landlords who entered the private rented sector following the introduction of dedicated buy-to-let mortgages in 1996 are now retiring in increasing numbers, it has been revealed.

Research by estate agency Hamptons reveals that some 140,000 landlords retired in 2022, representing 73% of all the properties sold by BTL investors.

Purchases made by this '�original cohort'� of landlords some 15-25 years ago following the introduction of the buy-to-let mortgage still make up the majority of privately rented homes in Great Britain, the report says.

Just over half of today'�s outstanding buy-to-let mortgages were taken out between 1996 and 2007.


Last year saw an unusual spike in landlords withdrawing from the market after deciding to retire and cash-in their properties, but Hamptons says a further 96,000 landlords are expected to retire this year and each year afterwards.

This in addition to the 924,000 who are already over the age of 65 but are still renting out properties.

During the past 12 years between 2010 and 2022 the agency estimates the number of landlords retiring annually has doubled as their demographic ages.

These figures will be particularly worrying for Ministers as the trend will further put pressure on stock and see rents rise.

landlords tax

Hamptons says recent tax and regulatory for private landlords mean many younger people are put off investing in the PRS and that the 'number of new purchases by landlords has remained relatively muted'�, says its head of research, Aneisha Beveridge (pictured).

'Millennials, who have struggled to get onto the housing ladder, have not been in a position to afford or consider purchasing a buy-to-let too.'�

tenant upstix landlords

Phil Tennant, COO of property buying firm Upstix, says: 'The demographic pressures pushing landlord sales revealed by Hamptons'� Lettings Index are only going to increase as time goes on.

"Combined with new imperatives to sell from stricter energy efficiency requirements, more expensive buy-to-let mortgages and fewer tax incentives, we may be facing an exodus from the sector in the near future.

'However, during a period of high unaffordability and low demand, many landlords will struggle to sell. Those looking to cash out should move quickly before the market cools further.'�


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