Copy article

"Landlords are turning into flippers" due to "strangulation" of rental sector

ended 02. July 2025

More and more landlords are starting to flip properties rather than rent as the walls close in on the sector ahead of the Renters' Reform Bill — and following a decade-long tax squeeze. The result could be less rental stock and higher rents, which one portfolio landlord has described as the “ultimate own goal”. 

7 responses from the Newspage community

Copy all

Star Quote
Copy

Editor
Ken James
Director at Contractor Mortgage Services
The UK’s army of buy-to-let landlords is facing a reckoning, and many are starting to vote with their feet. After years of being squeezed by tax changes, stricter lending rules, and a wave of regulation, portfolio landlords are now bracing for the impact of the Renters' Reform Bill and it seems that this legislation will only make renting more complex and less profitable than ever for some landlords. They are shouting enough is enough and are starting to look at being creative with the stock they have; some have refurbed to achieve a higher end property for resale, and we have a few clients who have gone as far as getting properties for sale with building plans in place to attract budding developers. It’s not a mass exodus yet but with the Renters' Reform Bill still working its way through Parliament, the shift may only just be beginning.
Copy

Kundan Bhaduri
Entrepreneur, Investor and Landlord at The Kushman Group
The gradual, systemic strangulation of the private rental sector is forcing a predictable, logical evolution: landlords are turning into flippers. After a decade of punitive tax changes and with the Renters' Reform Bill looming like a guillotine, the buy-to-let model is simply ceasing to make economic sense for many. Why endure a high-hassle, low-margin, politically volatile business when you can pivot to a buy-to-sell strategy? Flipping isn't without its own perils – the 3% Stamp Duty surcharge takes a hefty bite, and development costs are hardly trivial. But it offers something increasingly valuable: a clean exit. The ultimate irony, of course, is that, in its crusade to punish landlords, the government is simply cannibalising rental supply, which will inevitably lead to higher rents for the very tenants they claim to protect. A masterful own-goal if you ask me.
Star Quote
Copy

Patricia Ogunfeibo
When I retired from legal practice in 2015, it was with a view to flipping properties. When I got started, though, I decided I could put my time and money to better use by providing lovely homes for people needing to rent. 10 years on, and with the seeming vilification of landlords, the excessive tax burdens, the Renters' Rights Bill's proposals, together with successive governments' (both Conservative and Labour) and Local Authorities' belief that landlords are 'cash cows', I have now made the very easy decision to return to my original plan. In doing so, my pension will be less at risk, I will face less meaningless red tape and I shall enjoy what I do once more.
Copy

Editor
Michelle Lawson
Director at Lawson Financial
Smaller landlords are being forced to sell up or diversify. Serious investors are generally well versed to weather storms and will have a varierty of properties in their portfolio. Flipping works in some cases to give a quick return, however the costs to buy now with the additional 3% Stamp Duty takes a significant chunk of property value so investors have to look at ways to add value to get their money out. Some are going into larger HMO's but with the additional and selective licensing as well as Renters Reform restrictions in the student sector, care needs to be taken on the target market for these.
Copy

Editor
Tony Redondo
Founder at Cosmos Currency Exchange
Landlords are fleeing the UK private rented sector, driven by the Renters’ Rights Bill, tax hikes, high interest rates, and other requirements like the EPC. Many are flipping properties or investing in overseas BTL markets like Florida, South Africa, Portugal, and Dubai, chasing 6–10% yields, tax-free income, fewer regulations, and the currency advantage, for example, with the Pound hitting a near four year high against the Dollar this week for better returns. This exodus risks tightening UK rental supply further, pushing rents ever higher.
Copy

Editor
Rob Peters
Principal at Simple Fast Mortgage
Flipping or developing requires different skills, capital and risk appetite compared to buy-to-let. It's also important to differentiate between landlords and property investors. The first holds and rents property, dealing with tenants and minor issues or repairs, often themselves. The latter generally looks for hand-off investments which could be buy-to-let or develoment. The reality of property development is that with high material costs, planning delays and CGT implications, the returns from small scale developments also run on slim margins. For landlords with established portfolios, it often makes more sense to optimise holdings rather than jump into speculative flips. If this isn't possible, the data suggests most will simply sell up.
Copy

Jonathan Moser
CEO at Mo'Living
We manage portfolios for eight small landlords in North London, each with around five properties. Around 70% are holding tight despite rising regulation and uncertainty around the Renters' Reform Bill. They're still seeing solid returns and prefer to wait it out. Those selling up tend to be over 60; they’re simply tired of the hassle and would rather cash out and let their children decide what to do with the capital. We haven’t seen much interest in flipping or small-scale development. Most of our landlords are long-term holders who value steady rental income over riskier ventures. For now, it’s more of a cautious pause than a shift in strategy.