Why I’m Selling My Lower-Value Properties and Investing Elsewhere

For the past 24 years, I’ve been a landlord.
At my peak, I owned 148 tenanted residential properties (in my early 30s). Today, that number is closer to 80 — and shrinking.

Not because I’m leaving property. But because I’m evolving.

The reality is this: I’m now actively selling off a large portion of my lower-value UK residential portfolio. These are the same types of properties that once built my business. And I’m moving my capital into larger commercial deals and targeted overseas opportunities — including America and Dubai.

This isn’t just a diversification strategy. It’s a deliberate shift based on two decades of experience, hard lessons, and changing market conditions.

Here’s why.

The Lower-Value Property Model Isn’t What It Used to Be

When I started, buying low-value properties in the North of England was a solid strategy.

I could pick up houses for £40k–£80k, often in cash or with high-leverage finance, and rent them out with decent yields.
There was demand. There were fewer regulations. You could scale fast. And you could manage the inevitable issues — because margins allowed for it.

But fast forward to 2025… and it’s a different world entirely.

Poor Capital Appreciation

Many of these lower-value houses in traditionally deprived areas have seen little capital growth in 15–20 years.

They’ve stagnated while the rest of the market moved on.
In some cases, they’ve even gone backwards — especially when you factor in inflation, refurbishment costs, and management overheads.

You might still get 7–9% yields on paper, but the real returns are often eaten up by the next point...

A Magnet for Problems

Let’s call it what it is: lower-value properties come with higher levels of grief.

• Voids between tenancies
  
• Non-paying tenants
  
• Anti-social behaviour
  
• Damage to the property
  
• Expensive maintenance due to poor build quality and deterioration over time
  
• Harder re-lets in weak demand areas
  

These aren’t one-off problems. They become patterns over time.

I’ve had properties where the rent was £500 a month, but the cost of damage, rent arrears, and legal action ended up wiping out years of profit.

You might get away with one or two of these in your portfolio. But when you’re dealing with 80+ units, it becomes a full-time job in damage control.

The Legislation Is Becoming Unmanageable

The upcoming Renters Reform Bill, the abolition of Section 21, and the pressure to upgrade all rentals to EPC C by 2028 — this isn’t just red tape. It’s a sledgehammer to the lower-value model.

Many of these properties can’t realistically be brought up to EPC C without major works — which don’t stack up financially based on the rental income.

Add in compliance, selective licensing, HMO regulation, and ever-tightening enforcement from councils, and you’re looking at a tidal wave of cost, paperwork, and liability.

And for what? To net a few hundred pounds a month (if you’re lucky)?

The Social & Economic Landscape Is Shifting

Many of the areas I invested in two decades ago are now experiencing serious economic and social decline.

You can feel it when you walk the streets.

Shops closed. Anti-social behaviour rising.
Tenants more vulnerable, more transient, and harder to manage.
Support systems overstretched.
And councils often hostile to landlords — even the good ones.

It’s harder to get decent tenants, harder to manage those tenants, and harder to protect your asset.

That’s not sustainable — not when you have capital tied up in the deal and better opportunities elsewhere.

So… What Next?

For me, it’s time to take that capital — some of which has been sat in the same bricks for 20 years — and put it to better use.

Here’s where I’m moving:

1. Commercial Property

I’m now looking at larger, higher-value commercial buildings — especially:

• Mixed-use buildings in strong regional centres
  
• Light industrial and logistics units
  
• Retail with excellent covenants
  

The beauty of commercial property is that it’s less emotional, more contractual.

• You’re dealing with companies, not individuals.
  
• The leases are longer and more enforceable.
  
• The tenants generally respect the space and pay on time.
  
• You can often buy through your company and use different funding models.
  

Yes, the entry point is higher.
But so is the quality of the tenant, the duration of income, and the potential for value uplift.

And most importantly — it’s scalable, without the same headaches.

2. Overseas Property

I’m also putting money into international markets — namely:

• Spain (Costa del Sol and Balearics)
  
• Dubai
  
• Certain US states like Florida and Texas
  

These are markets where demand is driven by different factors — lifestyle, tourism, international capital, and population growth.

In many of these locations, you can:

• Finance locally
  
• Use properties for short lets / holiday lets with strong yield
  
• Benefit from capital appreciation in more robust economies
  
• Diversify your exposure away from UK-specific tax and regulation risk
  

Plus, it opens up lifestyle options for the future — a second home, a place to live part of the year, or a base for business.

What’s the Bottom Line?

I’m not saying there’s no place for small residential properties.
They’re how I built my portfolio. I learned the hard way, did the viewings, chased the rents, dealt with the headaches.

But I’ve reached a point where scale without strategy is stress.
And hanging onto low-value stock out of habit or nostalgia is not a plan.

I want fewer, better-quality assets.
More control, fewer moving parts.
Less stress, more upside.

And I know I’m not alone.
I speak to landlords every week who are quietly doing the same thing — exiting single lets, selling up portfolios, and rethinking what kind of property business they want to run in the years ahead.

Final Thought

This isn’t an emotional decision.
It’s a strategic one — based on 24 years in the game, thousands of deals, and a clear view of what’s coming.

If you’re a landlord sitting on lower-value stock and feeling the pressure… you’re not imagining it.

The rules have changed. The landscape has shifted.
And holding out for “one more good tenant” or “one more price rise” is a dangerous game.

There’s no shame in pivoting.

I’m doing it myself — and I’ll be talking more about how I’m structuring these commercial and overseas deals in future posts.

If you’re a landlord looking to exit, let’s have a conversation.

While I’m not looking to hold lower-end stock long-term, I’m still actively acquiring portfolios — with several exit strategies in place to manage and repurpose them effectively.

Follow me here for more real-world insights — no hype, no gimmicks, just the honest truth about UK property from someone who’s still in it, 24 years on.

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About the Author

Nick Statman is a property investor and advisor with over 24 years of experience and more than 5,000 UK transactions. He works directly with landlords, agents, developers, and investors on acquisitions, exits, and strategic deals. Nick is also the CEO of Bettermove, a UK-based quick property sale and hybrid estate agency.