A reason to sell and a reason to buy

In today’s market, the sale of residential property portfolios isn’t just about timing. It’s about realism. And yet, we continue to see many portfolio sellers holding out for prices that belong to a different era.

The situation is especially noticeable with legacy portfolios, where owners are seeking the kind of exit pricing they imagined back when yields were compressing, rents were rising fast, and debt was cheap. However, the fundamentals have changed. What’s happening now is a recalibration of value and that’s not a crisis: it’s a reality check.

The Psychology of Sellers

Many sellers, particularly those who’ve owned assets for a decade or more, still anchor their expectations to pre-2022 values. They might have refinanced once or twice, extracted capital, and now want to exit without giving up what they see as "paper gains." The trouble is, buyers aren’t playing that game.

This disconnect often results in portfolios being marketed at unrealistic levels. Agents go to market with inflated guides, get limited engagement, and see the same cycle play out: a lack of real offers, the seller blaming the agent, the agent replaced, and a new one brought in — with the same overambitious pricing. Rinse and repeat, until either reality sets in or the lender steps in.

Lending, Leverage, and Liquidity

We’ve entered a market where refinancing large portfolios is more difficult than ever. Leverage has tightened. The days of recycling equity every five years are on pause. For some, that’s triggered sales out of necessity, not preference.

But distress doesn’t mean desperation. We’re seeing a growing number of strategic disposals such as landlords rebalancing portfolios, consolidating into stronger locations, or exiting complex stock like HMOs, older walk-ups, or part-regulated blocks. The key in all cases is to be proactive. The longer a portfolio sits unsold, the more its perceived value erodes.

A Reason to Buy

For buyers, particularly family offices, funds, and private investors, this shift in sentiment has created opportunity, but only where pricing is grounded in reality.

There’s still plenty of appetite. Well-located, income-producing portfolios with scale and stability are in demand. So are value-add plays, but only if the risk is priced in. What buyers need now is a reason to buy, and that reason is price. Not price on paper, but real pricing that reflects today's debt environment, rental trends, and the cost of compliance.

The only way to really know what something is worth is to put it on the open market. It’s the one true test of value. Offers reveal appetite, and appetite reveals truth.

The Bottom Line

Whether you’re selling to exit, restructure, or shift strategy,  or buying to scale, diversify, or take advantage of softer pricing; the market is active. But it's not forgiving. Buyers are selective. Sellers need to be pragmatic.

The deals are happening — just not at yesterday’s prices. And that’s okay. Price it right, and you’ll find your buyer.

Explore current opportunities: https://portfolio-investments.lrg.co.uk/ 

And if you would like portfolio investment advice, contact us today at PInvestments@LRG.co.uk.