We’re at that point in the cycle of the property world when, to be blunt, many large portfolio landlords are either knackered, too old or on their last legs and are looking to pass on their long managed and barely mortgaged property mountains to younger, energetic, enthusiastic sons and daughters. Or not, as the case may be.
Landlords who bought at rock bottom prices in the 70’s and 80’s are now getting on a bit and in many cases, certainly the ones I’ve looked at recently on behalf of a buying client in Manchester, the mortgages are long since paid off and the values have rocketed into Lottery equivalent valuations despite being in severe disrepair. So why aren’t they passing down to a new generation of keep-it-in-the-family landlords, holding properties in trust for example to create future income or just selling one off to keep the inheritance tax-man at bay. I’ll tell you why I think not, ’cause the sons and daughters, long used to a life of luxury courtesy of (usually) daddy, just can’t be arsed. They don’t want to go collecting cash rents every week, take the time to renovate and refurbish or get their hands dirty. Seriously, I heard of a landlord selling whose two sons were off to become ski-instructors or something similar once daddy’s portfolio was liquidised. They’ve all had private educations, a comfy safety net and an easy ride – be a full time landlord? Not on your nellie!
Mr Landlord’s ‘kids’, now in their 30’s / 40’s, haven’t the slightest interest in running a property portfolio, selling off the family silver is far more preferable to polishing it for the next 30yrs. And those wily old coots who’ve wangled every last rental penny out of their disintegrating pile of bricks are now demanding top whack prices even though the figures simply don’t stack up. The tight-fisted old gits!