Why Are Landlords Selling Up in 2023

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In this Property Education video, Simon Zutshi, author of Property Magic, founder of property investors network (pin), and successful property investor since 1995, answers the question being increasing asked by property investors: “Why are landlords selling up in 2023?"

Simon considers the numerous reasons why landlords are selling up in 2023, and discusses the possibility of this causing a property market crash in 2023, and what this means for you and your property investing in the UK housing market. 

Simon has the unique position of having his ear to the ground all over the UK thanks to his network of 50+ monthly property networking meeting all around the UK. Simon knows exactly what is happening with property investors at a grass roots level, before anyone else.  

If you are a regular viewer of Simon’s property education videos on his YouTube channel, you will know that he been saying for the last few years that increasing numbers of property investors have been retiring early, and now more and more landlords are selling up in 2023. 

Prior to 2015 the number of landlords entering the UK housing market was on the increase, but from 2015 it switched and now there are more landlords leaving the UK property market than there are entering the market. 

One of the main reasons why landlords are selling up in 2023, is all of the government intervention, in what should be a free market, which started in 2015 with the announcement of plan to change the way property investors are taxed with the introduction of Section 24 in April 2017, phased in over 4 years. 

Many property investors have not really felt the impact of Section 24 until the interest rate rises in 2022, which have resulted in many property investors making no money from their rental property but still having to pay tax due to the Section 24 tax changes  

There was new HMO licensing regulation introduced in October 2018 which mean more HMO property need licenses. Also Article 4 direction has been introduced in many parts of England and all of Wales, where Permitted Development right have been removed. 

More recently we know that legislation in the Serviced accommodation and Short Term Rental market have been introduced in Scotland and will soon be introduced to England, which is probably good news, but it will cause many property investors to exit the UK property market. 

A few years ago there was talk about abolishing Section 21 which is how landlords remove tenants from property. This is now happening as part of the Renters Reform Bill. Simon recently released a property education video about the Renters Reform Bill which you should also watch.  

Then there is more legislation about requirement to have an EPC rating at C or above for rental property by 2025. This has been pushed back to 2028 but still some landlords are selling up because they don’t want to bear the cost of these requirements. 

 And finally simon answers the question: ‘Is it worth being becoming a landlord in 2023?” By the way the answer is YES and you can hear why in this property education video.  

Remember to visit your local property investors network, monthly property networking meetings, as our guest by using voucher code YouTube when you book at: https://propertyinvestorsnetwork.co.uk/meetings/