Allure of downsizing lifestyle drawing in landlords selling up en masse

Last year, landlords started to sell up en masse. Some were doing so because of the same old problems landlords always have to face. Others didn’t want to be bothered by new issues. Regardless of the reason, those who wanted to sell have been in the process of doing so for many months. Alongside this big sell-up is a growing trend of downsizing.

Now, not all landlords are selling up to downsize. Yet, these are two trends that are happening at once. Selling for landlords has been made easier and downsizing is very trendy right now. So, it’s right to assume that a good portion of landlords are downsizing. Looking at where many have their rental properties and where the best places to downsize are, it’s clear that a good amount of cash is being made along the way.

From landlord to downsizer

As you’d expect, large urban areas have long been made up of a lot of rental properties. London, Bristol, Cambridge, Nottingham, Belfast, Portsmouth, Manchester and Leicester, to name a few, are in high demand for rental properties. In London, particularly, Canary Wharf, Paddington, Southwark, Islington and Camden have been big business for landlords.

Now, however, there seem to be more reasons to sell than to rent for private landlords. Legislation, compliance, rising mortgages, the tax landscape and profitability have all changed in recent years. Government and economic changes have made being a landlord less enjoyable overall. Now that landlords can embark on selling a house with tenants, getting out of the game has become easier.

A house with tenants can be sold to a regular buyer. A platform could flip it to investors or rent it itself. Or, a landlord can sell the property to another landlord. The latter means that the tenants don’t even need to move out. Selling a house in property in any popular renting city or town stands to make a good amount of money. If the landlord is then looking to enjoy the downsized, more relaxed lifestyle, selling up just makes sense.

Downsizing for an easier life

Some might think that being a landlord is basically printing money. Taking rent, which is at an all-time high average now, for little work seems easy. Any landlord will tell you, though, that even the best tenants come with their issues to solve. The downsizing trend has clearly picked up to alleviate people of such stresses. Landlords get to shed the weight of responsibility and wind down in a nice, cosy home. Plus, there’ll be extra cash to spend.

It’s been found that selling a four-bed for a two-bed home in London could pocket over £400,000. Further, switching from a London four-bed to a two-bed in the North East could yield over £750,000. In many cases, just switching from detached to semi-detached can net a significant profit. In Elmbridge, you can get nearly £800,000 for this swing. In Tunbridge Wells, a £900,000 detached house can be downsized to a £490,000 semi-detached.

Given the pressures on landlords and the appeal of downsizing, it’s easy to see why a landlord would opt to sell up now for a more peaceful life and cash in the pocket.

The editorial unit