Experts say state pensioners, and actually, all landlords under age 55 are at risk.
State pensioners and over-55s face having to sell properties after rule change
State pensioner landlords are being faced with the prospect of having to sell properties over the new Renters’ Rights Act. Experts say state pensioners, and actually, all landlords under age 55 are at risk.
Vann Vogstad, chief executive and co-founder of property management platform COHO, told GB News: “These reforms will lead to more landlords choosing to sell their properties, and we’re already seeing it, particularly among older landlords.”
“In my experience, they are typically 55+. Many have built a side portfolio alongside their job and perhaps have retired or are nearing that point,” he said.
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“The RRA hasn’t massively changed the viability, but for many it’s more the ‘final straw’,” he said. “Unlike the taxation changes a few years ago, which fundamentally changed the profitability of investing as an individual (instead of via a limited company), this seems more emotion- or fear-based,” he said.
“The anti-landlord sentiment frustrates many landlords who offer great properties and service to people desiring or needing flexibility. But for the many landlords who feel that they’ve been targeted for years, this is another layer of ‘adapt your business, or face huge fines’,” he explained.
“The fines for doing things ‘wrong’ now will wipe out many years of profit from a single mistake,” Mr Vogstad warned.
And many may have had the idea that they’d do this anyway. Though the latest changes are pushing many of them to do this right away, at the same time, which means it’s likely a much worse market for them,” he went on and said.
“We are seeing more of the younger generation focus on high earning potential, specialist property investments, such as HMOs. This is probably because they would rather spend energy learning how to maximise returns instead of pursuing something simpler,” Mr Vogstad continued to GB News.
