There has been much discussion about the state of the private rented sector over recent years, from increased legislation to talk of landlord licensing, tax changes, and the incoming Renter's Rights Bill.

Add to this the astronomical rise in rental values, largely thanks to the reduced number of properties available in the private rented sector as landlords opt to sell up and cash in their investments as the property values rose post-pandemic. Interest rates have also increased, making your monthly mortgage payments higher. This means there is likely a decent return if your money was held in the bank rather than tied up in property, which has been tricky since the 2008 property crash.

As a landlord, you might be trying to decide if you should follow suit, sell up your portfolio to avoid bureaucracy and use cash in the equity for something else. Perhaps you're concerned about the cost of living crisis and worried that your tenants might be unable to pay their rent, and you want to avoid the problems this will bring you.

It's difficult to resist all of that lovely equity that is likely built up in the property since you purchased it, as the market has risen so much, and you might be pre-empting a downturn in the coming years. So, it makes sense to cash in now, doesn't it?

As with all major decisions in life, there are pros and cons.

The pros...

• Selling up will release your equity, assuming you have some, to spend however you wish. This could pay for an extension or refurb in your own home, a family holiday of a lifetime, a new car or investment opportunities that excite you more than rented property.
•  If you offload the property, you're no longer responsible for it, meaning there are no concerns about maintenance or repairs.
• Legislation changes in the private rented sector will no longer concern you.
• Your tax liabilities might be reduced if you remove the income from the property. Of course, you should seek professional advice, but this could be a positive change depending on your circumstances.

But, of course, there is a downside to everything, so the cons are...

• Selling the property will likely mean you're removing another home from the private rented sector, meaning your tenants might have to move out. Whilst your venture into property investment was likely for financial gain and not with a charitable purpose to provide housing, there has to be an element of empathy for the fact that, if you sell up, you will be evicting a family from their home. It's widely documented that tenants are struggling to find accommodation, and this imbalance between supply and demand has caused rental prices to rise considerably, adding to the pressure on tenants.
• Loss of monthly income. Whilst there are costs and expenses involved in owning property, if you sell the investment, you will remove that source of income generation.
• We can never predict what will happen in the property market, but one thing is for sure, if you don't own the property any more, you will not be able to benefit from any future value increases.
• If you were to sell up now and then decide to get back into property investing in the future, it will likely cost you much more to buy another property as the market has risen.
• If the property is vacant whilst on the market for sale, there will be no monthly income, so you must cover the costs and expenses. It's essential to have a plan for this.

There's no right or wrong answer here as it is so personal, so don't get caught up in the hype and assume that the legislation and government debates about landlords are all negative. There's no need to sell up unless you think it works for you. And you should be absolutely certain before you do.

If you think it might be the right time to sell up, contact our property experts, who can assist and advise you on the best course of action.