The Daily Telegraph has given an insight into the parlous state of the private rental market – by finding a former landlord who ditched buy to let for fast food franchises.
Anisha Sharma used to own six buy to lets but in 2022 switched to buy four McDonald’s franchises.
Her sister – unnamed in the Telegraph article – owns another three of the fast food franchises.
Of the roughly 1,400 McDonald’s branches in the UK, some 1,100 are owned and run by franchisees who pay the fast food chain rent and royalties.
Also over the weekend the Sunday Times reported on a buy to let investor – Jake Fletcher – had five buy to lets having started as a landlord at the beginning of the pandemic.
One was in Surrey and the rest on the Isle of Wight.
It recent tax changes and the additional energy efficiency costs implicit in the Renters Rights Bill mean Fletcher has to sell.
Instead he’s investing the funds chiefly in ISAs where he gets what he regards as a good yield – 5% annually – with little effort.
He is quoted saying: “For me I realised I could get 5% on cash [ISAs] and wouldn’t have to deal with any of the [landlord] issues.
“ … We used to be looking at investment properties every day, and now we’re looking at funds. I think, done correctly, you can get further, more quickly and with less initial capital.”
Both articles quote investment and wealth management advisers reporting that they are seeing a rise in landlords quitting the residential sector.
This article is taken from Landlord Today