Jul

Property firm reports more landlords selling up as ‘red tape’ burden rises

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Home buying company the Open Property Group (OPG) has reported a 56% jump in PRS property purchases during the past year, with landlords blaming red tape for their decision to sell up.

It bought nearly £6 million worth of property from homeowners and landlords looking for a fast and hassle-free sale in the first half of 2023 and saw a 21% rise in sales between Q1 and Q2.

Nearly 90% of these were houses with an average purchase price of £132,789, typically taking 29 days for completion.

OPG reports that despite fewer transactions taking place across the property sector, about two in five sales are falling through. As a result, more people are turning to cash buyers like OPG as the market continues to feel economic and social pressures, says MD Jason Harris-Cohen (pictured).

“We have seen a record number of completions in the first half of 2023 and unsurprisingly, we’ve also increased our rental purchase activities as landlords continue to face higher finance, management and tax bills.

“But it’s actually increasing legislation that seems to be the most common motivation for investors.”

Tenure

OPG can buy any type of property, regardless of tenure, and have bought many buy-to-let properties without the landlord needing to evict tenants.

The company works with a network of investors, auction houses and estate agents to sell some of the properties on, mostly after some light refurbishment and/or asset management.

Adds Harris-Cohen: “With no end to the cost-of-living crisis on the horizon, I expect enquires to increase for the remainder of the year. But we predict a quieter period for onward sales as we have had slightly below expected results and will be more cautiously trading to retain more capital.”

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